Thank you for this bug report. To properly diagnose the problem, we
need a short but complete example script to be able to reproduce
this bug ourselves. 

A proper reproducing script starts with <?php and ends with ?>,
is max. 10-20 lines long and does not require any external 
resources such as databases, etc. If the script requires a 
database to demonstrate the issue, please make sure it creates 
all necessary tables, stored procedures etc.

Please avoid embedding huge scripts into the report.

<?php
$host = 'tcp://72.232.216.58:56004';
$sock = stream_socket_client($host, $errno, $err, 5, (STREAM_CLIENT_CONNECT | STREAM_CLIENT_ASYNC_CONNECT));
stream_set_blocking($sock, false);

while (isset($sock)) {
  $r = array($sock);
  $w = $e = NULL;
  stream_select($r, $w, $e, 1, 0);

  if (count($r) > 0) {
    echo "Ready to read:\n";
    foreach($r as $rr) {
      $md = stream_get_meta_data($rr);
      var_dump($md, feof($rr), fgets($rr));
      fclose($rr);
      unset($sock);
      echo $host."\n";
    }
  }
}
?>

The above code should cause the stream_select to return a readable connection after 5 seconds (in reality it takes around 3 minutes), which when read from will return false, indicating its a failed connection attempt. It would be nice if eof was set on the stream, because the stream technically is at its end (although i'm not sure if that would affect the use of stream_select or not).

The timeout parameter for stream_socket_client() only applies if you are not making an async connection attempt.  When you ask for an async connection attempt, the function returns "immediately" and so cannot possibly wait for the connection timeout interval.

The correct way to detect whether an async connection has completed is to use stream_select() and wait for the socket to become readable.  If reading from that socket gives you an error, then the connection attempt failed.

Also note that you really should not be using stream_get_meta_data() to determine anything about the status of a network connection unless you understand exactly how the PHP streams internals function.  The manual states this very clearly--your code is broken if you use it for any kind of logic in your script.

Making this into a documentation problem.

you completely missed my point..
stream_select() should return the failed aysnc connections as readable connections after the timeout parameter has elapsed. I know for a fact that this can be done, and its not hard to implement either.

Also, i use stream_get_meta_data() because feof() has a bug where it locks up randomly for no reason, where as stream_get_meta_data() does not. Don't try to tell me my code is flawed when i know its not.

A note has been added to the documentation about the timeout parameter.