Acutally, the problem turned out I was trying to access a target with 2 different initiators on 2 servers. All kinds of strangeness on the server occurs when this happens. After I realized my mistake and fixed by using more descriptive target names, its now working correctly. Getting 230 mbps during file copies and loving it.

I would have thought Windows would have generated an error but I guess it has no idea if that target is running some kind of software to allow access from multiple initiators.