pageoneresults - 12:20 pm on Nov 25, 2010 (gmt 0)
Redirects will generally be followed until a valid result can be found (or a loop is recognized). We will follow a limited number of redirect hops (RFC 1945 for HTTP/1.0 allows up to 5 hops) and then stop and treat it as a 404.
Nice to see that in writing from Google. I've been referencing RFC 1945 for years and some folks have argued with me on how many hops Googlebot will follow. Anything more than 2 and you're in the Kiss of Death zone. ;)
It's nice to have an official resource to point to. That robotstxt.org website was fed to the dogs a couple of years ago.