I'm using KVM based on Ubuntu 9.04 server and am experiencing this issue. 
Here's what happens for me:
1) The host will lose network connection. No ping, no ssh, nothing.
2) SSH into the guest that dropped will put me into the host (note that it 
first warns about the SSH key changing; I have to remove the offending line 
from ~/.ssh/known_hosts)
3) Eventually the network will kick back on (running `ipconfig eth0 promisc` 
helps, in my experience) and my SSH connection to the host will be dropped (the 
IP gets correctly assigned back to the guest)
4) I can now SSH into both guest and host as expected.

I have not tried rebooting guest systems.

-- 
br0: Dropping NETIF_F_UFO since no NETIF_F_HW_CSUM feature.
https://bugs.launchpad.net/bugs/274298
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