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1) For running "successive" test cases I used browser "Refresh" button but I think there might be some better option to handle this. Is there any option exists in Selenium IDE ?
If you want to chain execution of different tests, there is the notion of test suite. A list of tests to run one after the other (see http://labs.libre-entreprise.org/pluginsscm/scmcvs/cvswebviewvc.php/ofbizNeogia/neogia/manufacturing/webapp/manufacturing/tests/ManufacturingTestSuite.html?revrevision=1.9;content-type=text%2Fplain;cvsroot=neogia10&root=neogia&view=markup)

Otherwise if you just want to replay the same test in a loop, I'm not aware of a such feature in selenium. Bur if the loop is finite, you can achieve a similar result by using a test suite that refers x times the same test.2) Suppose I have a condition to create the new user each time. As I can put the value of user login say "user1" for the first time but when this test case runs second time it generates error (It hangs up in between). So Is there any option to put a "counter" or Javascript code
in the Test cases so I could create the "user2" when this test case runs second time ?
The general problem behind you issue is how to run a test multiple times wihtout risking duplicated primary keys or having to remove all data created by the test.

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Here an example based on one of my test (http://labs.libre-entreprise.org/pluginsscm/scmcvs/cvswebviewvc.php/ofbizNeogia/neogia/manufacturing/webapp/manufacturing/tests/TestCreateNomenclature.html?revrevision=1.6;content-type=text%2Fplain;cvsroot=neogia10&root=neogia&view=markup)

<!-- create a variable named uid that contains an unique identifier -->
<tr>
       <td>store</td>
       <td>javascript{(new Date()).getTime() % 10000}</td>
       <td>uid</td>
</tr>

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