There are some things which strikes me:
Tue Mar 12 21:47:18 2013 Warning: cannot open --log file: C:\Program Files\OpenVPN\log\client1.log: The process cannot access the file because it is being used by another process. (errno=32)
Your client mentions the logfile is in use. On the other hand, this logfile is not mentioned in the client-config.
Tue Mar 12 21:47:19 2013 MANAGEMENT: >STATE:1363146439,WAIT,,,
Tue Mar 12 21:48:19 2013 TLS Error: TLS key negotiation failed to occur within 60 seconds (check your network connectivity)
Tue Mar 12 21:48:19 2013 TLS Error: TLS handshake failed
This line makes me think the client is waiting for some authentication to go through and exactly after 1 minute waiting, it failes it connection.
So please increase server-logging and see what's happening there.
maikat wroteget a different internet connection on your client and try again
It might indeed even be possible your router is having problems routing traffic from inside via the external ip-address back to inside. So please do so.