Here is the situation, I have a network wordpress installation with directories. I imported all of my previous posts onto a fresh installation, no plugins are active, I am using the default theme, and the .htaccess is the default set when networks are activated (i.e. only contains what Wordpess stated to put in there). I am using a static front page.
When I activate permalinks, any slug starting with blog results in an Error 310 (net::ERR_TOO_MANY_REDIRECTS): There were too many redirects.
I have cleared the browser cache, tried different settings and resetting the permalinks, rebuilt the .htaccess to the default settings from the network admin panel.
The server is running Apache 2.2.23 and I also have my old wordpress single installation on this server - which has permalinks working fine. Any idea how I can fix this problem?