The error is caused when a loopback mount is attempted.

Check that NIS or NIS+ does not have an entry for mounting /local or /local/files (where do your home directories mount?) /home ?).

Since this is a new disk, you could either try to find the problem and fix it, or just mount the new disk on a different name, /anyothername. (You could also do this to try to find what was trying to mount up on /local...)

If you do find that something is trying to mount up on /local or /local/files, then you can vi /etc/auto_master and tell it not to mount that file system

# Master map for automounter
/local/filesl -null
+auto_master

This tells the automount to not use the /local/files map entry which will
allow you to use a local /local/files directory on the host.