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My first problem is the toolbar. My toolbar is hidden and not showing File, Edit etc..
By mistake I just remove the center image to get the tool bar but the timeline covers my model working area now and it's now re-sizing. When I drag my mouse pointer to that bar where pointer changes to up, down arrows to re-size the window, but when I click and drag pointer to make my working area bigger and timeline smaller than nothing works, the areas are not moving, just split in more and join.
To split or join areas, you can either drag on the shaded corner with 
LMB, or you can 
RMB on the edge between areas and select Split or Join.
Once you have done that, move the mouse over the area you want to replace and you will see an arrow appear which indicates which area will replace which.
To confirm, either release LMB (if you were dragging from the corner widget), or click with LMB if you use the RMB method.
To resize areas, drag the edge of the area with LMB:
To change an area's type, click the drop down on the far left of the header and select an editor type:
So, to fix your layout:
Change the top 3D view to an info area and resize it so that only the header is visible.
Change the timeline to a 3D view
For more information, see the wiki.
