how to overcome circular referral problem?

["Corisen" <csyap@starnet.gov.sg>]

hi, i've created 2 suffixes using 2 separate databases running on the same
openldap server (ldap.domain1.org.sg) on the same RH7 box.

            dc=domain1,dc=org,dc=sg
                               |
              --------------------------
             |                                      |
        ou=people                       ou=domains


            dc=domain2,dc=org,dc=sg
                               |
              --------------------------
             |                                      |
        ou=people                       ou=domains

i'm trying to allow domain1 user to be able to search domain2 user and vice
versa.

i've added the following referrals to the first databases
(dc=domain1,dc=org,dc=sg) using ldapadd:
dn: ref="ldap://ldap.domain1.org.sg/dc=domain2,dc=org,dc=sg";,
ou=domains,dc=domain1,dc=org,dc=sg
objectclass: top
objectclass: referral
ref: ldap://ldap.domain1.org.sg/,dc=domain2,dc=org,dc=sg

if i perform a search using base dc=domain1,dc=org,dc=sg, i'm able to see
users in domain2.

but if i try to add a similar referral in the 2nd database
(dc=domain2,dc=org,dc=sg):
dn: ref="ldap://ldap.domain1.org.sg/dc=domain1,dc=org,dc=sg";,
ou=domains,dc=domain2,dc=org,dc=sg
objectclass: top
objectclass: referral
ref: ldap://ldap.domain1.org.sg/,dc=domain1,dc=org,dc=sg

i think i've hit a circular referral problem right? outlook express will not
be able to find any search results and netscape will report hop exceeded.
pls kindly advise how can i overcome this circular referral problem and yet
allow searching in both directions?

thank you.