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GigaStack Gigabit Interface Converters (GBICs) installed in a stack support a loop configuration only if every device in the stack is running IOS software Release 12.0(5)XU (April 2000) or higher.
For earlier software releases, an illegal loop is created under the following conditions:


Prior to Release 12.0(5)XU, loop causes excessive collision errors on the port and might cause the link to become unstable. This instability decreases performance on the links, and communication between the switches in the stack is adversely affected. For correct configuration scenarios, see the Catalyst GigaStack Gigabit Interface Converter Hardware Installation Guide.
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Posted: Fri Apr 7 16:19:55 PDT 2000
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