xen 4.1 host priodically dropping network packets of domU

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http://serverfault.com – I have xen 4.1 Host running on a ubuntu 12.04 LTS Server with ip 153.x.x.54. I have setup 2 VMs on it, namely, "dev.mydomain.com" and "web.mydomain.com" with ips 195.X.X.2 and 195.x.x.3 respectively. For network the VMs connect through xendbr0 (xen-bridge), and can accces the network properly. I can also login to the VMs with ssh with no issue. However when I ping any of the VMs, there is a high amount of periodic packet drop. If I the ping the xen host (dom0) there is no packet drop. Following is a output of "tcpdump | grep ICMP" on dOM0 while I was pinging one of the domU tcpdump: verbo (HowTos)