Is there an easy way for someone who knows LaTeX well to learn
    texinfo quickly

I'd just dive in, what else can you do.  There is a bit of introduction
in the manual.  I seem to remember an introduction-to-texinfo document
kicking around somewhere (Bob, did you write it?) but am not sure.

There's a lot of existing manuals around, it might be easier to find one
moderately similar to what you want to write and start from there.

    2.  Is the texinfo node in some sort of a circular buffer?  If not
        I should come out of it after pressing the space bar enough number
        of times - but it does not seem to happen.  I am using red hat 5.1.

Red Hat 5.1 comes with a pretty old Texinfo.  I don't know what version
it is or what its behavior was.  The current (intended) behavior of
SPC is to read the manual as if you were reading a book, so yes, you
should get to the end of the manual if you press SPC enough times.

You can get the current version (4.0) from
ftp://ftp.gnu.org/gnu/texinfo.

Thanks,

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