I am currently reading an excellent book called Did God Know, A Study of the Nature of God by H. Roy Elseth.
In chapter 8 titled God Lives in Time, on page 88, Mr. Elseth includes a quote by Gordon C. Olson. I thought it explained well the biblical case of God living in time, rather then out.
"The theological dogma that God is an 'eternal now', or that time or succession is not an element in the Divine existence, is evidently a philosophical rather than a biblical concept. In the bible God is presented as a living being who walks or dwells with men, performs definite acts at definite times, who rests, observes, thinks, and is reasoned with, remembers, is grieved, is jealous, is provoked to anger and then causes His wrath to rest, is moved to compassion, who forgives and comforts, delights and rejoices, hearkens unto men, repents, changes His plans, makes new decisions, etc. These various acts, states of mind, or experiences obviously conflict and cannot coexist at the same instants in a particular series of events, and thus require the chronological element of time for their occurrence."