First, turn off compression:

Next, let's do a partial clone to truncate the amount of info coming down:

When that works, go into the new directory and retrieve the rest of the clone:

or, alternately,

Now, do a regular pull:

I think there is a glitch with msysgit in the 1.8.x versions that exacerbates these symptoms, so another option is to try with an earlier version of git (<= 1.8.3, I think).