The issue just happened, so after fours days of up time the server memory shows following:
top - 09:03:38 up 3 days, 22 min, 2 users, load average: 0.00, 0.03, 0.00
Tasks: 104 total, 1 running, 103 sleeping, 0 stopped, 0 zombie
Cpu(s): 0.2% us, 0.2% sy, 0.0% ni, 98.6% id, 0.8% wa, 0.0% hi, 0.1% si
Mem: 3089396k total, 3059924k used, 29472k free, 137096k buffers
Swap: 2031608k total, 0k used, 2031608k free, 2526236k cached
So, at this time when any client tries to copy that 200mb file, it hangs. So, somehow it never starts using the
swap space. (which its supposed to start using when RAM is near full!)
I am now rebooting the server to avail all the 3gb RAM!