Problem with move from iis6 to iis7.5 http redirect

Hi Experts I've got a slight problem with transferring a site from IIS6 to IIS7.5
The website has one site physical directory of files which primarily served the private side via HTTPS, but within the site was a public directory which had its own website in iis with a redirect to the corresponding site.
The way it  worked was that if you went to https://www.website.com the private site was displayed as expected (secure) and when you went to http://www.website.com the viewer was redirected to the public subdirectory under as an  HTTP:// address (not secure). I've shown the  website configurations below.

This all worked great until moving servers to a new server running IIS7.5. I've replicated the settings pretty much as good as I can but i get an error from browser saying there is an error
"Firefox has detected that the server is redirecting the request for this address in a way that will never complete."
So as a temporary measure in having to redirect to https://www.website.com/public which does the job put it is running via HTTPS where the is no need and any old bookmarks tot eh public site don't work any more.

You help is appreciated.

Regards
Steve


DNS Record - www.website.com    A    192.168.0.1

Private Website Details
-------------------------------
Multiple identities
    192.168.0.1    80     [host header value blank]
Multiple SSL identities
     192.168.0.1    443
Home Directory
    A directory on this computer
    Local path
        d:\wwwroot\website
Directory Security
   Valid SSL certificate assigned

Public Website Details
--------------------------
Multiple identities
    Default           80     www.website.com
Home Directory
    A redirection to a URL
    Redirect to a URL
        http://www.website.com/public