Newly Installed RedHat 6.0 Guest for System z under zVM 5.4 Locks Up - Red Hat Customer Portal

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Issue

Newly installed RedHat 6.0 base system was installed under zVM on system Z. Other RedHat 5.4 and 5.2 system operate normally. No recent updates to zVM were applied.
High paging rate is observed via zVM IND USER command but no CPU time is being consumed by virtual machine. User application daemon is hung as well. Putty to login is hung. After long period of time system "may" come back, but often never comes back.

Environment

Red Hat Enterprise Linux 6 for IBM System z mainframe
z/VM 5.4

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