While using on one of my project encounter this problem, When I open Home Page after installation an endless loop occur.

Why this happens?

It happens when during installation of WordPress MU, database was not created but the wp-config.php has already been written. If wordpress find this file then installation not begin & it search for the DB to load blog but actual DB information is not there. It try again & again to load blog & redirect loop occur in result.

Fix

To fix the issue simply rename or delete the wp-config.php that was generated during the first install & re-install wordpress mu. Make sure you have corrected the DB problem before you go through the install again & database user you are using during installation have sufficient permission to create and manipulate database tables.