There is another way to deal with the looping issue...
Hi all. This has happened to my G4 tower about a year back, and most recently to my friends Mac Mini, both PPC running latest Tiger. As soon as you click "OK", "OK" pops right up again. Here's some fun for you gamers: if you set your mouse over "location", and put your other finger on the return key, hit the return key and click your mouse almost simultaneously. If you hit it just right, it will break you out of the loop. Yes it works. Not a joke. It will allow you to access the settings and make a change. Once I made some authorized changes, my machine stopped putting up the warning window. Also, without deleting plist files, etc.. the problem, at least in my case, has not returned. With my friends Mac Mini, she was also able to break the loop and get into setting up a new account (she was changing ISP's). It only took her two or three tries. She had never opened this window before, although the machine had been working all along. At least we have some ways to deal with it. One last thing. There was a trojan said to possible cause this issue, but I think it's an isolated once in a blue moon cause. There was a small freeware utility called 'DNSChanger removal tool', put out by MacScan. You might want to find it and run it just for the heck of it. In my case, both machines came up clean.