Uploading large goes no where

Hi,
I have following task,

desc "Copies the tared sources to server"
task :copy_sources do
    run "mkdir -p ~/source"
    src = ENV["HOME"] + "/source/M17.tar.gz"
    print src
    put(File.read(src), "#{user_home}/source/M17.tar.gz")
    run "cd ~/source/; tar -xzvf M17.tar.gz"
end


The tar file is 300MB. The cap says uploading file and it does
nothing. However if the tar file is small size, i checked only
one file in tar, it worked fine.

strace of ruby process just shows that its waiting on select.

select(4, [3], NULL, NULL, {0, 0})      = 0 (Timeout)
time(NULL)                              = 1196410387
select(0, NULL, NULL, NULL, {0, 10000}) = 0 (Timeout)
time(NULL)                              = 1196410387
sigprocmask(SIG_BLOCK, NULL, [])        = 0
sigprocmask(SIG_BLOCK, NULL, [])        = 0

Any ideas?
Thanks,
Manish