Repro steps:
1, create a new linode using ubuntu 13.10, boot
2, follow the instructions at http://docs.docker.io/en/latest/install ... ring-saucy ; alternatively, curl -s https://get.docker.io/ubuntu/ | sudo sh
3, sudo docker run -i -t ubuntu /bin/bash # this will pull the latest ubuntu image, install & run it
4, in the newly started docker image:
> apt-get install wget

Expected result: The wget package is downloaded & installed
Observed result: network connection goes down to 0 byte/sec at roughly 2kb of progress

Possibly-related issues:
* When dropping in a full docker of my own, and using nc -l -p 80 ,according to strace, it halts at select()

Reproducable using:
* Ubuntu 13.10, Ubuntu 13.04
* Datacenters: Dallas TX, London UK

Bug does not reproduce on local machine. Without any judgement on my part, exact same steps produce a working droplet on Digital Ocean; and also runs my docker image flawlessly.

If you haven't done so already, I would recommend putting in a support ticket. Sorry, I don't know enough to make any other suggestions.

Have you got all the modules needed for docker? (lxc-checkconfig)

I'm having the exact same issue. I'm able to reproduce this with Ubuntu 12, 13.04 and 13.10.

Pinging works just fine:

PING google.com (173.194.115.39) 56(84) bytes of data.
64 bytes from dfw06s40-in-f7.1e100.net (173.194.115.39): icmp_req=1 ttl=55 time=0.510 ms
64 bytes from dfw06s40-in-f7.1e100.net (173.194.115.39): icmp_req=2 ttl=55 time=0.546 ms
64 bytes from dfw06s40-in-f7.1e100.net (173.194.115.39): icmp_req=3 ttl=55 time=0.578 ms
64 bytes from dfw06s40-in-f7.1e100.net (173.194.115.39): icmp_req=4 ttl=55 time=0.549 ms

But any TCP? traffic (wget/curl) seems to hang or transfer incredible slowly. This thread seemed to describe my issue exactly:

https://code.google.com/p/google-comput ... tail?id=57

But the fix they mention (setting the MTU to 1460) didn't fix my connectivity issues.

I've also reproduced the same issue with Docker v0.7.6. ipv4 forwarding is enabled and the necessary iptables rules are generated by docker. I'm not running a firewall.

Here's my lxc-checkconfig output:

--- Namespaces ---
Namespaces: enabled
Utsname namespace: enabled
Ipc namespace: enabled
Pid namespace: enabled
User namespace: enabled
Network namespace: enabled
Multiple /dev/pts instances: enabled

--- Control groups ---
Cgroup: enabled
Cgroup clone_children flag: enabled
Cgroup device: enabled
Cgroup sched: enabled
Cgroup cpu account: enabled
Cgroup memory controller: missing
Cgroup cpuset: enabled

--- Misc ---
Veth pair device: enabled
Macvlan: enabled
Vlan: enabled
File capabilities: enabled

Note : Before booting a new kernel, you can check its configuration
usage : CONFIG=/path/to/config /usr/bin/lxc-checkconfig

I got in touch with Linode support and they moved me to a different host. Since then everything has been working!