Redirect look and htaccess

I have just installed WordPress 2.8, very easily. I can load the admin page of the blog OK. But when I try to load the actual blog page
ie
http://www.themagicofyou.co.uk/blog
or
http://www.themagicofyou.co.uk/blog/index.php

I get a Firefox error
==================
“The page isn’t redirecting properly

Firefox has detected that the server is redirecting the request for this address in a way that will never complete.”
==================================
(And hooray for Firefox, because IE8 also won’t load it but gives a very unhelpful error message)

When I checked the site on
http://www.unmaskparasites.com/
it said

++++++++++++++++++++++++++++++++
http://www.themagicofyou.co.uk/blog/
Redirects:
301 -> http://www.themagicofyou.co.uk/blog/index.php
302 -> http://www.themagicofyou.co.uk/blog/
301 -> http://www.themagicofyou.co.uk/blog/index.php
302 -> http://www.themagicofyou.co.uk/blog/
+++++++++++++++++++++++++++++++

So I looked at my .htaccess and at the top, it says

RewriteEngine on
RewriteCond %{HTTP_HOST} ^themagicofyou\.co\.uk$ [NC]
RewriteRule ^(.*)$ http://www.themagicofyou.co.uk/$1 [R=301,L]
redirectMatch 301 ^(.*)/$ http://www.themagicofyou.co.uk$1/index.php

I can’t remember what this is meant to do!!! But it looks relevant. It is probably something to do with redirecting my old site to this current site.

There is absolutely nothing in the htaccess intended to relate to the blog.

I would be grateful indeed if anyone could tell me if the .htaccess is causing the problem, and – the gratitude of the elephant who got the thorn pulled out of its foot would be nothing in comparison – how to fix it.

Many thanks

Andy