Here is the answer to the question. We accidentally found the reason why the LAN worked and not the Internet.
The keyboard used on the LAN was set to channel 1. All worked fine.
The remote location had his midi keyboard set to channel 3. We were puzzled why no midi data was received AND had spotty audio. Spotty audio means that remote site heard me but I could not hear him. I couldn’t get his midi data either.
Once we changed the remote midi keyboard to transmit on midi channel 1 - the midi came through perfectly AND the audio worked correctly.
Another remote location was trying to use a set of Yamaha durms that will only transmit on channel 10 - so we can’t record his drums unless VST Performer can listen to channel 10.
So it wasn’t LAN vs internet…it was VST Performer unable to receive midi channel other than channel 1. We also could not recieve midi pitch bends on channel 1 but we could receive the standard midi key presses remotely as long as it was sent on channel 1.