One more piece of info:
If on the client - I create a new symbolic link - it is fine on both client and server.
On Client:
# ln -s testing.db.tar.gz JUNK
# ls -l JUNK
0 lrwxrwxrwx 1 root root 17 Jun 28 20:24 JUNK -> testing.db.tar.gz
Same back on the NFS server ...
# ls -l JUNK testing.db
lrwxrwxrwx 1 root root 17 Jun 28 20:24 JUNK -> testing.db.tar.gz
lrwxrwxrwx 1 root root 17 Jun 28 14:12 testing.db -> testing.db.tar.gz
Very weird ...

