I use the same syntax even then i do not get it to work for me.
This is the code i have written to my app
public class Demo extends DroidGap {
@Override
    public void onCreate(Bundle savedInstanceState) {
        
        super.onCreate(savedInstanceState);
        
        // LoadUrl timeout value in msec (default of 20 sec)
        super.loadUrlTimeoutValue = 60000;        
        //Set properties for activity  
         
        // load splash.jpg image from the resource drawable directory
        super.setIntegerProperty("splashscreen", R.drawable.launcher_image);         
        //show loading dialog 
        super.setStringProperty("loadingDialog", "WhiteLabel App,Loading..."); 
        super.loadUrl("file:///android_asset/www/index.html");
     }
}
This is the code i have written. when i moved to phonegap-0.9.2 to phonegap-0.9.3  i got the error
onReceivedError: Error code=-6 Description=The connection to the server was unsuccessful. URL=file:///android_asset/www/index.html
That's why i changed the loadUrlTimeoutValue to 60000(instead of 20000). Then the  app works on phonegap-0.9.3.
when i try to add the progress dialog all the scripts are executed successfully but i got the error
In jquery-1.4.4.js: Line 33 : JavaScript execution exceeded timeout.  But all the script is executed successfully
and display black screen UI is not displayed.