I want to define an algebra, where there are three elements: 0, 1 and $\infty$ and two operations, addition and multiplication defined, both commutative:
$$\begin{align*} 0+0&=0\\ 0+1&=1\\ 0+\infty&=\infty\\ 1+1&=1\\ 1+\infty&=\infty\\ \infty+\infty&=\infty\\ 0\times0&=0\\ 1\times0&=0\\ 1\times1&=1\\ 0\times\infty&=1\\ 1\times\infty&=\infty\\ \infty\times\infty&=\infty \end{align*}$$
I want Mathematica to simplify expressions in this system.

CirclePlus[]andCircleTimes[]for defining your special operations, as it's usually not a good idea to modifyPlus[]andTimes[]willy-nilly. – J. M.'s missing motivation May 21 '12 at 02:31