[localhost][Multisite] improper redirect

Aim : moving a multisite WordPress installation to localhost

Environment: LAMPP on Ubuntu 10.4.

I am moving a mutlisite wordpress installation to localhost. Steps that I have completed:
1. recreated db using the backup sql file.
2. copied all folders and files from the server and kept under htdocs.
3. now using the newly generated wp-config.php, When I tried to install a mutlisite, I was asked to add the following to wp-config.php

define('MULTISITE', true);
define('SUBDOMAIN_INSTALL', false);
define('DOMAIN_CURRENT_SITE', 'localhost/wordpress');
define('PATH_CURRENT_SITE', '/wordpress/');
define('SITE_ID_CURRENT_SITE', 1);
define('BLOG_ID_CURRENT_SITE', 1);

4. I have also added the following in .htaccess:

RewriteEngine On
RewriteBase /wordpress/
RewriteRule ^index\.php$ - [L]

# add a trailing slash to /wp-admin
RewriteRule ^([_0-9a-zA-Z-]+/)?wp-admin$ $1wp-admin/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(wp-(content|admin|includes).*) $2 [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(.*\.php)$ $2 [L]
RewriteRule . index.php [L]

While I access my site with the url http://localhost/wordpress, I am taken to http://localhost/wordpress/wordpress/ and get error message stating Firefox has detected that the server is redirecting the request for this address in a way that will never complete.

Please help access my site