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I wonder if the iperf gives u different results with 'udp' than tcp? This could indicate a re-ordering issue or a path-mtu-discovery issue or something like that.

On the MTU thing, this was my problem as well. in the [ovs] section of your ml2 conf, add veth_mtu = 1600 i did that, bumped the outer mtu as you did, and then didn't bother lowering the inner mtu on the instances. Be aware that some network devices have very little buffering for 9K. I used 2K outer MTU for this reason (e.g. 'jumbo' is different than merely 'large').