Yes, I made a new wp 3.2 multisite and it seems to work fine.
Same server, nothing else has changed, just the upgrade to sql 5.
I paid extra to get supreme support from my host and asked them to double check everything, including all the php / sql modules being upgraded and installed properly. We went through the process of importing the sql 4 database into a new blank database (which is not running v5) - and still have the same redirecting loop issue.
I tried check / repair of this database and still fails.
This site was a wpmu v 1.5 (I think) that has been upgraded several times over the years.
I tried renaming the plugins folder to make sure it was not a plugins issue (although I really think this install was not running any plugins)
I just had the same issue occur on a different server, with a different host and the mu sites on that server did the same thing. They were able to re-import the backup dumps into php/sql5 and everything runs fines on that server, taking away this redirecting issue - but that does not seem to work properly on this one server with my other host.
the dot com redirect loops, the dotcom/wp-admin redirect loops.. going to wp-admin/upgrade.php shows a page, click the buttin, it changes the page and says done - and does not seem to change anything - very strange.