FYI: The above solution also seems to work if applied on the PC-side. Apparently, the fix works so long as you apply the MTU=576 to either side of the connection.
Those of us running Fedora/Red Hat or distros derived from them probably have a /etc/sysconfig/network-scripts/ifcfg-usb0 script to set-up the Z's usbnet connection. I added MTU=576 to mine (after disabling my edits, described above, from the Z) and transfers don't hang.
This strikes me as a "better" solution. IMO, the problem lies in Linux 2.6.14+ (and sounds like a bug to me) and so the fix should reside there as well.
~ray