Can I continue testing from the next iteration of the same tested item?

I currently have a web based applicaiton that I am testing, and I will occasionally run into a condition that triggers a timeout from the server.  In that instance, it has been determined that that restarting the script from the next iteration of the tested item would be the appropriate method for handling the error.  Upon recieving the timeout error I would like to perform the following tasks:

• 
  Increment an error count


• 
  Check to see if that error count has hit it's predetermined maximum


• 
  Close Internet Explorer


• 
  Set a new "count" on the tested item (Keeping the same amount of iterations as other workstations running the same test)


• 
  Re-start the same tested item with the new count

I have attempted to use the runner.stop(true) call with stop on error disabled.  I have attempted to run the above tasks from the OnLogError and OnStopTest event handlers without success.  I attempted to use the runner.stop(true) call to skip to the next iteration of the same tested  item, but the documentation states that it will actually move to the next tested item....  At this point, I'm curious if I am stuck with adding several hundred child tests to a tested item parent test.