permanent redirect problem

Hello,

We just changed company name, and therefore also domain name. I'm trying to do a permanent redirect to the new domain name but am having problems. I have tried both .htaccess method:

Redirect 301 / http://www.newdomain.com/

and Apache, but to no avail.

When I browse the old domain using Firefox, I get:
Problem loading page. The page is not redirecting properly. Firefox has detected that the server is redirecting the request to an address in a way that will never complete.

So it looks like its stuck in an endless loop. My error_log doesn't say anything (significant), and my access_log displays a generic log:
<IP HERE> - - [24/Feb/2006:10:50:59 -0500] "GET / HTTP/1.1" 301 359 "-" "Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.8.0.1) Gecko/20060111 Firefox/1.5.0.1"

I have tried doing this, for testing:
Redirect 301 /test http://www.newdomain.com

and typing http://www.olddomain.com/test redirects as advertised.

Can anyone tell me what I'm doing wrong? My Apache version is 2.0.47, fwiw. Both newdomain and olddomain are on the same machine, same IP.

Thanks in advance