Redirect Issue only occurs when accessing Dashboard Admin

Using WP 2.6

The blog is in a subdirectory and the proper steps have been followed to redirect from the root to the /blog/ directory. The site works fine.

However, when logging into the Admin panel I get the following redirect error:

“Redirect Loop: Firefox has detected that the server is redirecting the request for this address in a way that will never complete. The browser has stopped trying to retrieve the requested item. The site is redirecting the request in a way that will never complete”

I have tried .htaccess tweaks, etc with no success. Any help appreciated. The only time this occurs is logging into the Admin.

Thanks!