Reflection requires a large amount of the type metadata to be loaded and then processed. This can result in a larger memory overhead and slower execution. According to this article property modification is about 2.5x-3x slower and method invocation is 3.5x-4x slower.
Here is an excellent MSDN article outlining how to make reflection faster and where the overhead is. I highly recommend reading if you want to learn more.
There is also an element of complexity that reflection can add to the code that makes it substantially more confusing and hence difficult to work with. Some people, like Scott Hanselman believe that by using reflection you often make more problems than you solve. This is especially the case if your teams is mostly junior devs.
You may be better off looking into the DLR (Dynamic Language Runtime) if you need alot of dynamic behaviour. With the new changes coming in .NET 4.0 you may want to see if you can incorporate some of it into your solution. The added support for dynamic from VB and C# make using dynamic code very elegant and creating your own dynamic objects fairly straight forward.
Good luck.
EDIT: I did some more poking around Scott's site and found this podcast on reflection. I have not listened to it but it might be worth while.