If you want a more peaceful and effective approach to child rearing than time outs, I hope you'll read to the end. Though they are often better than some harsher alternatives, time-outs just don't work for some kids, Results vary based partly on the style of time-out employed, and partly on the child's personality. The ideal is not to punish, but to give the child a chance to reset his emotions if he's upset and acting out, or to consider why certain behavior isn't acceptable.
In my experience, and that of several young families I've watched over the years, there's nothing to be gained, and a great deal to lose, by "punitive" time outs. Especially those that turn into extended struggles (or, in your case, the child acting like it's a joke Mommy just doesn't get), with the child repeatedly escaping and the parent repeatedly dragging the child back and starting the clock again. This becomes terribly hard on both the child and the parent, and since the idea is to help the child understand self-control and find calming alternatives to his behavior, what's the point? Both parties end up furious, upset, and often crying – about the punishment. The original behavior has been completely lost in the struggle.
Once it degenerates into a battle of wills, the parent thinks she MUST win, and the only way to accomplish that is emotional or physical force. A child who's just beginning to understand herself as a separate being with separate desires and motives is understandably confused and frustrated by a setup that seems to set her parents against a most basic needs.
Two common outcomes, which I have personally experienced in my birth familly:
1. It can gradually convince the child that she will be able to win when she gets big enough or devious enough, and the child works toward or sullenly awaits that end result, with either outwardly expressed disdain and rage or inwardly guarded anger. (This was a younger sister of mine, who has had a seriously dysfunctional life.)
2. It can establish an understanding that parents don't care about her feelings and needs, which can result in a sad and uncommunicative child who believes she's not worthy of respect and care. (This was me and another sister, who have had years of work to overcome painful self-esteem issues.)
Those are outcomes of time-outs (and other forms of punishment) gone wrong. I'd like to mention that while we were kids, my sisters and I were considered "model" children by many admiring onlookers, and my mother did seem to be in complete control. But very painful stuff was going on underneath the glossy surface.
The best time-out is a "safe" time for the child in which she is given a supportive opportunity to deal with frustration, disappointment, anger, or inappropriate behavior.
If you want to try the non-punitive time-out, a quiet spot near the parent, on the couch or a chair near where mommy's working in the kitchen, are excellent locations. (In public, you may need to carry the child to the car, or a bench, or sit on a patch of grass.) Quiet conversation may be desirable and completely appropriate. Sending a child to her room may work, if it's not a 'punishment' – even if she forgets while she's there and starts playing, that's fine if the point was to get into a better mood. But some kids will find being sent away from the parent to be an unbearable rejection, and the suffering they experience may be totally out of proportion to the misbehavior.
After the time-out, usually about one minute per year of the child's life, you can help her reflect on a more desirable behavior than the one that stopped her play. Help her understand what her alternatives might be; using words instead of hitting or screaming; asking for help if she's frustrated; finding something else to do if she's asking for something she can't have (and parents really would do well to provide those alternatives before the meltdown); etc.
Many parents require the child to apologize after a misdemeanor. I personally think this is teaching the child to tell a convenient lie so she can get back to her play. It is fine, however, to model, early and often, the civilized art of apology. Just as with any other courtesy, children learn best by seeing, hearing, and receiving those kindnesses. And for the past year, since my grandson turned 4, he's usually offered an apology without being asked for one (sometimes an hour or more after the misdemeanor).
So, what if your child doesn't seem to be one who benefits from time-outs? There are two related approaches that are often referred to as empathetic parenting or emotion coaching, that I find to be much more effective, sane, compassionate, encouraging and positive. For younger children, I'm impressed by the approach taught by John Gottman in Raising your Emotionally Intelligent Child (http://www.education.com/reference/article/important-pare...) or as used by Dr. Harvey Karp in The Happiest Toddler on the Block. You can find a whole set of videos and interviews on this in youtube if you'd like to see this alternative in action, and you can google the terms to find a whole batch of websites that explain the basics and the benefits.
For more verbal kids, I can't recommend strongly enough the wonderful book How to Talk So Kids Will Listen, and Listen So Kids Will Talk, in a clear, easy-to-read cartoon format. Though it's non-punitive (in the forceful sense), this is not parent-as-pushover stuff. I've watched pretty amazing results when parents have tried these techniques with kids whom they considered willful, stubborn, spoiled, or otherwise hopeless.