A have a situation where A redirects to B:
A: http://www.baku-project.com/test B: http://www.baku-project.com/baku-project/test/
This is an aliased/secondary domain and, to me, this behavior reveals that.
What is the technical name of this problem/behavior?
That's a client-side redirect. The server, or the HTML markup on the page, is sending a redirect back to the browser, causing the browser to redirect to the new location.
If you try Firebug in Firefox, or Fiddler2, you should see which status code it's getting. http://en.wikipedia.org/wiki/List_of_HTTP_status_codes. It's probably a 301 or a 307 status code.
This is set by the host or the site owner since baku-project is not the primary site, but instead resides in the /baku-project folder (as you suggested). In case you're interested, here's how you can manage sub-sites under a single account: http://weblogs.asp.net/owscott/archive/2010/01/26/iis-url-rewrite-hosting-multiple-domains-under-one-site.aspx. That may help explain it further.
