haruspex: I must have been sleeping when I wrote that :). It is really embarassing :(.
Let me try to cover it up. You are right. The proof is obviously wrong; however, the claim is right. Let me re-
write the proof.
Let the number n=1+5^25+5^50+5^75+5^100. Let the p be one of its factors. Then n=p*m where m is another number.
Lemma1: 5^125=1mod(p)
Proof: n=(5^125-1)/(5^25-1). Hence 5^125=1+n*(5^25-1)=1+p*m*(5^25-1).
Lemma2: 5^(p-1)=1mod(p)
Proof: Follows from Fermat's theorem.
Lemma3: If k is the least non-zero number such that 5^k=1mod(p), then either k=125 or k|125.
Proof: If there is no k<125, then according to lemma1, k=125 is the least number
for which 5^k=1mod(p). If there is a k less then 125 satisfying 5^k=1mod(p), then
let 125=kx+r where r is the reminder after Euclidean division of 125 by k. Hence
0<r<k. Lemma1 and 5^k=1mod(p) implies that 5^r=1mod(p) and hence, there is a number less than
k satisfying 5^r=1mod(p) against our assumption that k is the least of such non-zero
numbers. Hence r has to be =0 and k|125.
Lemma4: (n,5-1)=(n,5^5-1)
=(n,5^25-1)=(n,5^25+1)=(n,5^50+5^25+1)=(n,5^75+5^50+5^25+1)=1.
(1+5^25+5^50+5^75+5^100,5-1)=1 (4 is has no other prime factor than
2 and n is odd).
(1+5^25+5^50+5^75+5^100,5^25-1)=(1+5^25+5^50+2*5^75,5^25-1)
=(1+5^25+3*5^50,5^25-1)=(1+4*5^25,5^25-1)=(5,5^25-1)=(5,-1)
=(5,4)=1.
Since (5^5-1)|(5^25-1), and since (n,5^25-1)=1,
(n,5^5-1)=1.
(1+5^25+5^50+5^75+5^100,5^25+1)=(5^50,5^25+1)=(-5^25,5^25+1)
=(1,5^25+1)=1.
(1+5^25+5^50+5^75+5^100,5^50+5^25+1)=(5^75+5^100,5^50+5^25+1)
=(-1,5^50+5^25+1)=(5^50+5^25,5^50+5^25+1)=(5^50+5^25,1)=1.
(1+5^25+5^50+5^75+5^100,5^75+5^50+5^25+1)=(5^100,5^75+5^50+5^25+1)
=(-(5^75+5^50+5^25),5^75+5^50+5^25+1)=(1,5^75+5^50+5^25+1)=1.
Lemma5: If a number divides n, then it cannot divide 5^k-1
for k=1,5,25,50,70 or 100.
Proof: Follows immideately from Lemma4.
Theorem: k=125 is the least number for which 5^k=1mod(p).
Proof: k|125 from lemma3. Hence k has to be 1,5,25, or 125.
From lemma5, a prime p which divides n cannot divide
any number of the form 5^k-1 for k=1,5,25. We know
from lemma1 that it holds for k=125 that 5^k=1mod(p).
Hence the least number for which 5^k=1mod(p) is
k=125. Q.E.D.