Chris said they're working on the problem. Something about the TTL with leaves and ultrapeers. But as far as the number in the Hosts column when you're connected to an Ultrapeer, Adam says he thinks it is how many ultrapeers that are inter-connected to that ultrapeer. For some reason he wasnt 100% sure. I have a snapshot of me in leaf mode connected to an ultrapeer with 13 of other ultrapeers inter-connected to him.
http://24.37.161.8/images/01-01-02-12.43pm.jpg
you can see the date and time...