Ok, I have managed to reproduce this problem (at least partially) by changing the order of filesystem preferences in /etc/fstab - listing iso9660,udf instead of udf,iso9660, when the image is indeed iso9660.
In this case, mountall mounts it, then remounts it twice more, then exits. So the infinite loop may be related to having multiple loopback filesystems in /etc/fstab.
Ok, I have managed to reproduce this problem (at least partially) by changing the order of filesystem preferences in /etc/fstab - listing iso9660,udf instead of udf,iso9660, when the image is indeed iso9660.
/home/ubuntu/ raring- desktop- amd64.iso /mnt/starcraft iso9660,udf user,loop 0 0
In this case, mountall mounts it, then remounts it twice more, then exits. So the infinite loop may be related to having multiple loopback filesystems in /etc/fstab.