We report on the giant magnetoresistance (GMR) of multiwall carbon nanotubes with ultra small diameters. In particular, we consider the effect of the inter-wall interactions and the lead/nanotube coupling. Comparative studies have been performed to show that in the case when all walls are well coupled to the electrodes, the so-called inverse GMR can appear. The tendency towards a negative GMR depends on the inter-wall interaction and on the nanotube le ngth. If, however, the inner nanotubes are out of contact with one of the electrodes, the GMR remains positive even for relatively strong inter-wall interactions regardless of the outer nanotube length. These results shed additional light on recently reported experimental data, where an inverse GMR was found in some multiwall carbon nanotube samples.