Take a look at the circular linked list in the Linux kernel source: http://lxr.linux.no/linux+v2.6.36/include/linux/list.h.
List processing (particularly of circular lists) gets way easier when you treat the list head like an element of the list (a so-called "sentinel"). A lot of special cases just disappear. You can use a dummy node for the sentinel, but if the next pointer is first in the struct, you don't need to do even that.
The other big trick is to keep a pointer to the next pointer of the previous node (so you can modify it later) whenever you modify the list. Putting it all together, you get this.
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