Redirection Problem

When I try and install WordPress on my development server (Ubuntu 11.04, PHP 5.3.5-1ubuntu7.3) I am initially enable to install without problems and the database is populated. Once the install is completed however I get a bug whereby visiting subdomain.site.co.uk (where wordpress is installed) redirects me to a URL which looks like this:

http://subdomain.site.co.ukhttp/subdomain.site.co.uk/

which is not a valid path and so gives a page not found error.

Initially I thought this might be a mod_rewrite problem but it seems to occur with the module both enabled and disabled.

Any suggestions much appreciated as I’m completely stumped on this one!