Ed, as I've mentioned before, since you and Larry are the Vodavi Gods, I'm not going to begin to hang with you guys at the system level, but I have some thoughts from a TCP/IP point of view.
I was thinking about the TCP/IP Checksum. There could be corruptions happening all along the way, but when the Checksum attempts to calculate, could that be where the failure is causing the issue? I mean we would expect it to fail, but without sniffing packets it's hard to know for sure. BTW, sniffing packets would be a good place to look, but in the absence of that, have you tried going back to basics and dropping the baud rate and trying to move a very small file?
Larry, wasn't there something in the old dial ups about error correction and was that related to the Xon/Xoff? It's been too many years.
It would almost be nice to try some sort of UDP transfer and see if it flies.