Redirect Loop

Hi,

I’ve read a couple of other posts about this, but no-one seems to have had the same problem.
Here’s the story.
In order to make my one category appear in the navigation amongst the page list, I have created a page called News and added a re-direct in the custom field. This works fine, and when you link the link, it shows the posts in the News category. However, if I change the permalink structure to %categories%/%postname% to make the URLs a bit nicer, I get stuck in a re-direct loop when I click the link for News.

Anyone know why this might be happening, and what might fix it?

Cheers