Can't talk to local network interface

I have just installed a new world/kernel dated:

Aug 16 09:54:34 tao kernel: FreeBSD 8.0-BETA2 #0: Sun Aug 16 03:21:18 BST
2009

I've found that since booting it I can not talk to anything using the
servers own IP address locally. I can telnet ports and ping 127.0.0.1 but
trying anything on 192.168.1.2 just sits there saying trying... and 100%
packet loss. I can connect to 192.168.1.2 from another server on the
network however. It's literally just the box looping back to itself.

If I revert to this kernel:

Aug 16 18:17:47 tao kernel: FreeBSD 8.0-BETA2 #0: Sat Jul 25 20:09:24 BST
2009

then everything works fine again.

The interface in question is this:

vr0: <VIA VT6102 Rhine II 10/100BaseTX> port 0xb000-0xb0ff mem
0xf6000000-0xf60000ff irq 16 at device 13.0 on pci0
vr0: Quirks: 0x0
vr0: Revision: 0x8d
miibus0: <MII bus> on vr0
vr0: Ethernet address: 00:40:63:e8:79:3e
vr0: [ITHREAD]

vr0: flags=8843<UP,BROADCAST,RUNNING,SIMPLEX,MULTICAST> metric 0 mtu 1500
options=2808<VLAN_MTU,WOL_UCAST,WOL_MAGIC>
ether 00:40:63:e8:79:3e
inet 192.168.1.2 netmask 0xffffff00 broadcast 192.168.1.255
media: Ethernet autoselect (100baseTX <full-duplex>)
status: active

I am running ipfw but the only rule loaded is the default rule which is
default to accept on all interfaces. I've tried disabling the firewall with
the sysctl as well and the problem persists so I don't think it's ipfw
related.

Regards, Matt