>What is the smallest network that can support BGP ?


Again, distinguish between external routing and the BGP protocol. The 
BGP protocol itself imposes no restriction on prefix length, but the 
policies of the ISPs involved do.



>we have a /27 network with two ISP UUNET and @work

 From which ISP do you have the /27?  It's unlikely that a prefix that 
small would ever be globally routable.  If it is from UUNET space, 
both UUNET and @work would have to agree to let @work advertise that 
block.  Very unlikely that would happen.

If you must solve this problem from a pure routing standpoint, it is 
probably much more realistic to get two diverse connections to UUNET, 
assuming your address space is part of theirs.

There may be other strategies if you have address assignments from 
both UUNET and @work, but they will probably involve DNS, NAT, and 
possibly secondary server addresses.

Unfortunately, there are no general solutions for multiprovider, 
multihomed routing for small networks.  To help more, I'd really need 
to know more about your applications -- what problem you are trying 
to solve.  Do you support servers that need to be reached from the 
Internet?  Is the connectivity for your clients reaching external 
servers?  Are there VPNs involved?

>when the router is full configured for load balancing traffic going out

How do you define load balancing here?

>the @work connection does not come back
>router reports destionation net unreachable
>
>UUNET say /27 is not a problem
>@work say we need a least a /24 network
>
>when UUNET fail over we have no traffic come back over the @work connection=
>.
>

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