From: "W. Michael Petullo" <wp0002@drake.edu>

    Mounting a filesystem image with `mount -t ext2 -o loop=/dev/loop1 foo
    bar` works fine -- the first time.  Unmounting it also works.  However
    once I have executed the above mount/unmount commands, any successive
    mount using /dev/loop1 fails with: "ioctl: LOOP_SET_FD: Device or resource
    busy."

    Also, after any mounts using loop-back devices have been unmounted, trying
    to rmmod the loop device fails with a similar message.

    I wasn't sure if this behavior was due to the kernel or umount (mount
    2.9o) not freeing resources correctly.  Either way, at this point I have
    to reboot to use /dev/loop1 a second time.

1. read "man 8 mount"
2. read "man losetup"

More explicitly:

From man mount:

       ... It is possible to replace /etc/mtab by a
       symbolic  link  to  /proc/mounts,  but some information is
       lost that way, and in particular  working  with  the  loop
       device will be less convenient.

So, either do not use the symlink, or do the `losetup -d' by hand.

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