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Update 2/1/2011 - There is now a SP2 hotfix that addresses this here: http://support.microsoft.com/kb/978021
Consider the following scenario:
In this scenario, the Distribution Manager does not honor the retry settings on the Distribution Point tab when the Distribution Manager retries the distribution.
Note Before each retry, there is a 10-second delay.
For information on the hotfix and associated settings needed to resolve this see the following new Knowledge Base article:
KB978875 - The Distribution Manager does not honor the "Number of retries" and "Delay before retrying (minutes)" retry settings on SCCM 2007 SP1 site servers
J.C. Hornbeck | System Center Knowledge Engineer