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[rajibando]

Version 2.6.31.1.1+2.6.32-41squeeze2 of cloop-module-2.6.32-5-686-bigmem already installed, skipping.

Yes I was aware of that actually, I ran the code once again just to generate the output which I could post.
root@Squeeze:/home/user# lsmod
Module Size Used by
cloop 11538 0

and modprobe cloop does not give any output.