Help with 301 in IIS

Hello, I'm new here and have a question regarding 301 Redirects. I'm not sure if this is the right place for this question; if it isn't I apologize in advance.

Here's the situation: The company I'm working for owns two different domains that both point to the same IIS server. I know this is bad for SEO and just plain silly, so I told my boss to get rid of one of them. He said the top brass wants to keep both; one is the name of the company, and the other is a generic domain that is highly desired by our competitors.

So, the obvious choice is a 301 redirect. I tried to set it up, but it resulted in an infinite loop. The settings in IIS are set to redirect to a directory on the server where the site files are located. Obviously, changing this setting to redirect to a specific domain results in the loop. There's only one web site service in IIS and I basically set it to redirect to itself.

I originally searched the Windows BBS for info because I honestly don't know much about IIS, but didn't find anything useful. Any assistance here would be much appreciated.

http://www.webconfs.com/how-to-redirect-a-webpage.php