Linux Advanced Routing & Traffic Control HOWTO
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15.6. Circumventing Path MTU Discovery issues with per route MTU settings

For sending bulk data, the Internet generally works better when using larger packets. Each packet implies a routing decision, when sending a 1 megabyte file, this can either mean around 700 packets when using packets that are as large as possible, or 4000 if using the smallest default.

However, not all parts of the Internet support full 1460 bytes of payload per packet. It is therefore necessary to try and find the largest packet that will 'fit', in order to optimize a connection.

This process is called 'Path MTU Discovery', where MTU stands for 'Maximum Transfer Unit.'

When a router encounters a packet that's too big too send in one piece, AND it has been flagged with the "Don't Fragment" bit, it returns an ICMP message stating that it was forced to drop a packet because of this. The sending host acts on this hint by sending smaller packets, and by iterating it can find the optimum packet size for a connection over a certain path.

This used to work well until the Internet was discovered by hooligans who do their best to disrupt communications. This in turn lead administrators to either block or shape ICMP traffic in a misguided attempt to improve security or robustness of their Internet service.

What has happened now is that Path MTU Discovery is working less and less well and fails for certain routes, which leads to strange TCP/IP sessions which die after a while.

Although I have no proof for this, two sites who I used to have this problem with both run Alteon Acedirectors before the affected systems - perhaps somebody more knowledgeable can provide clues as to why this happens.

15.6.1. Solution

When you encounter sites that suffer from this problem, you can disable Path MTU discovery by setting it manually. Koos van den Hout, slightly edited, writes:

The following problem: I set the mtu/mru of my leased line running ppp to 296 because it's only 33k6 and I cannot influence the queueing on the other side. At 296, the response to a key press is within a reasonable time frame.
And, on my side I have a masqrouter running (of course) Linux.
Recently I split 'server' and 'router' so most applications are run on a different machine than the routing happens on.
I then had trouble logging into irc. Big panic! Some digging did find out that I got connected to irc, even showed up as 'connected' on irc but I did not receive the motd from irc. I checked what could be wrong and noted that I already had some previous trouble reaching certain websites related to the MTU, since I had no trouble reaching them when the MTU was 1500, the problem just showed when the MTU was set to 296. Since irc servers block about every kind of traffic not needed for their immediate operation, they also block icmp.
I managed to convince the operators of a webserver that this was the cause of a problem, but the irc server operators were not going to fix this.
So, I had to make sure outgoing masqueraded traffic started with the lower mtu of the outside link. But I want local ethernet traffic to have the normal mtu (for things like nfs traffic).
Solution:
ip route add default via 10.0.0.1 mtu 296
(10.0.0.1 being the default gateway, the inside address of the masquerading router)

In general, it is possible to override PMTU Discovery by setting specific routes. For example, if only a certain subnet is giving problems, this should help:

ip route add 195.96.96.0/24 via 10.0.0.1 mtu 1000

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