With the release of Debian 5.0 "Lenny" as stable, I have upgraded my servers and installed its Xen 3.1.2 and Kernel 2.6.26 Xen packages for my DomU's. After that, one of my DomU's kept freezing: 100% CPU, no responses on the console whatsoever. I found that various people report similar problems, but no hints towards a solution.
If you experience similar freezes, downgrade your DomU to the 2.6.18 kernel from Etch: Add the etch sources to your APT repository in both Dom0 and your DomU, install linux-image-2.6.18-6-xen-686 (or -amd64 for 64bit systems) and modify your Xen configuration to use the old kernel. You can keep the rest upgraded to Lenny.