I don't know.
This is normally the job of the server administrator to help you on such kind of things.
If you want that I haave a look on your server, I can just suggest you to order our billable support.
www.jms2win.com/en/joomla-multisite?page...35&category_id=1

Oh! Last night was not in vain.
I also had a problem

"JFolder::create: Infinite loop detected
Unable to create destination"

I tried all the solutions, changed the law to folders, categories Ötz
The solution was very simple:
In hosting panel of my ISP I fix "PHP open_basedir"
example:
was: /var/www/clients/client1/web24/web
changed to: /var/www/clients/client1/web24


That's all! MS working perfect.
Sorry for my bad english!

GlavPortal.Net

Oh! Last night was is crazy. %)
I also had a problem

"JFolder::create: Infinite loop detected
Unable to create destination"

I tried all the solutions, changed the law to folders, categories Ötz
The solution was very simple:
In hosting panel of my ISP I fix "PHP open_basedir"
example:
was: /var/www/clients/client1/web24/web
changed to: /var/www/clients/client1/web24


That's all! MS working perfect.
Sorry for my bad english!

GlavPortal.Net

The infinite loop detected by joomla when creating a directory is due to the fact that has to create more that 20 directories recursivelly.
In JMS previous 1.2.64, when the multisites.cfg.php is configured with a letter tree, this message can appear when you have a site ID with more than 20 characters.
We have fixed this particular case in JMS 1.2.64

So check your JMS version and potential get the latest version.
See the FAQ for the procedure.
www.jms2win.com/en/faq/faq-joomla-multi-sites#cat-122