You have the problem, that the installation of a new Joomla Extension doesn't works after a server removal ? And your Joomla Extension Manager reports:
JFolder::create: Infinite loop detected Warning: Failed to move file!
Then you can solve the problem possibly as follows:
First Step: Go to the "Global Configuration" in your Joomla 2.5 Backend
Second Step: Click on the "Server Tab" in the "Global Configurations"
Third Step: Change the "Path to Temp Folder" in the server settings
Important! : /www/htdocs/2ReTas/test/tmp is only our example path.
1. Use for "2ReTas" the login name of your website.
2. Use for "test" the root directory of your website.
You can get both informations from your web hoster.
Your "Temp to Path Folder" should look like this:
/www/htdocs/"the login name of your website"/"the root directory of your website"/tmp
Maybe it helps you further !