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→Travel restrictions
It is very obvious that the government is keeping track about your travels. Every guest-house has to report which guests they had and even if you stay in a small village you need to register with the local police guy. It is almost impossible to stay with locals, because they need a permit. A few years ago it might have been allowed to stay one night in a monastery, but also that is not possible any more since the protests in Yangon in 2008. Some locals say that there are many new (unclear) rules and nobody wants to get in trouble. Be careful that you don't push people to help you and put them in danger. Also don't be surprised if you stay during the day with some monks somewhere and the local police officer is coming around to ask some question. As the locals told me, it is just their job nothing important, they have to report what are you doing, but in general there will be no problem, if you don't stay overnight.
EDIT 2019: It seems to be really difficult to stay with locals overnight. Even though most of them are super friendly, the restrictions from the government still seem to be a big thing. Also keep in mind that in the worst case not only could you end up being questioned by the police or local authorities but also you might put the locals in danger. Same holds for temples. That being said, if you can make sure to not be caught, you'll have a great time!
=== Political situation ===
