Sorry for the late reply, i was very busy the last couple of days, i'll do test your configuration in my lab as soon as possible and feed you back.
Sorry for the late reply, i just had very urgent things to take care of, please do accept my apologies. The configuration you've posted is very straight forward and seems to have no problem, can you please describe the specific symptoms and the configuration done on the switches.
On switch we had configure Vlan same as PE router, port connected to PE configured as Trunk and port connected to PC configured as access for that Vlan.
Problem is, when we try to transfer file between both end PC, can transfer file smoothly from one side only, from other side transfer speed is very slow and ftp connection drop after transfer of 1024 byte.
There is no ACL and Rate-limit on the LSP.
I've labed your exact setup and it worked perfectly (the only difference is that i've used ATM interfaces rather than the serial interfaces, but its not a big deal), can you elaborate on the systems part.
[Sorry for the late replies i am currently in the middle of an important project, which is keeping me extremely busy]
in any case you have a problem with MTU.
You break MTU1500 along the path.
Try to determine what is the maximum ip packet size with df-bit set you can transfer along the path.
your 7206VXR,NPE300 and 3640 are very old.
They cannot preserve MTU on the path. Ethernet controllers have restriction in hardware. They were created to support (accommodate) ethernet frames + 802.1q or ISL. But it's not enough for EoMPLS tunnel.
As alternative you can use L2TPv3 - which will let you do fragmentation.