wordpress multisite subdirectories not resolving

Hi Hope someone can help.

I am trying to set up a multisite on Amazons EC2 platform using Apache PHP.

I have installed a wordpress and insured pretty HTML is working. I have then gone through Multisite setup. This appeared to go fine but now when I set up a new site the site won’t resolve properly. The mainsite address works fine but the subsite http://54.195.244.100/mytestsite/ resolves eventually but doesn’t load the stylesheet and http://54.195.244.100/mytestsite/wp-admin doesn’t resolve at all. In firefox i get this message
“The page isn’t redirecting properly
Firefox has detected that the server is redirecting the request for this address in a way that will never complete.”

I have the .htaccess in the root directory with the following

RewriteEngine On
RewriteBase /
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]

I have access to the virtual host settings and they look like this.

`DocumentRoot /var/www
<Directory />
Options FollowSymLinks
AllowOverride All
</Directory>
<Directory /var/www/>
Options Indexes FollowSymLinks MultiViews
AllowOverride All
Order allow,deny
allow from all
</Directory>`

I suspect I have missed something simple but my eyes are starting to go square looking for this one so any help greatly appreciated.