Ok, ok, ok, I hate to post twice, but here goes... ;-)

Phil, more diagnostics things you can review:

What version of z/OS are you using? 
Are you using IBM's TCP/IP software or another vendor's package?

DATACTTIME
FIFOIOTIME

Insert/remove TRACE and DEBUG statements.

Check your PROGxx parmlib member for placement of the modules used for FTP. 
(Look in Performance Considerations in 'IP Configuration Guide' for more info 
and other things to consider.)

Also, are your systems suffering other performance problems in CPU and/or 
network traffic? JES2 overhead work? Slow TN3270 response times?

My network guy says that some hardware problems can perhaps be the reason 
somewhere along the route between the 2 machines.

Or buy a bigger machine... ;-)

HTH and good luck!

Groete / Greetings
Elardus Engelbrecht

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