I knew there were issues with the delay activity in WWF 3.0 ( MOSS ) and there were hotfixes to resolve that issue. I didnt expect the same to happen in Sharepoint 2010 ( .Net 3.5 WWF). But when I used it in my state machine workflow.. to my surprise it didnt work.

Finally, I got it working after setting the propertvalue ‘job-workflow’

To check if the property is set ( most likely it is not set )

stsadm -o getproperty -pn job-workflow -url http://sp2010vmc002:1000

if you get <Property Exist=”No” /> then set it by the following

stsadm -o setproperty -pn job-workflow -pv "Every 5 minutes between 0 and 59" -url http://sp2010vmc002:1000

Finally, do a iisreset and restart the Sharepoint 2010 Timer service.

Ref:
http://technet.microsoft.com/en-us/library/cc424970(office.12).aspx
http://social.msdn.microsoft.com/Forums/en-US/sharepointworkflow/thread/2390dcee-d2f3-4a55-a024-6ad14913568e

Check it out:SharePoint 2010