Redirect Problem (On Windows Server)

Just installed a fresh copy of wordpress on a windows server (with godaddy.com) in a folder called wordpress. I’ve created a sub-domain (wordpress.markmurphy.ca) and pointed it to the wordpress folder. When i try to access wp-admin, it redirects to wp-login with the redirect query sting in the url set as:
http://wordpress.markmurphy.ca/wp-login.php?redirect_to=http%3A%2F%2Fwordpress.markmurphy.ca%2Fwordpress%2Fwp-admin%2F

notice that it sticks in the /wordpress folder. Since that is what the sub-domain points to, that directory doesn’t exist so it just stays on the login page.

I’ve checked the site url in the options table on the database and followed all the trouble shooting directions under “redirecting” in the sites help section.

It still wants to add /wordpress in the redirect query sting after trying to access wp-admin and being taken to the login page.

I have this test installation running at: http://wordpress.markmurphy.ca

I’ve pointed this sub-domain to: http://www.markmurphy.ca/wordpress

Both urls in “Settings” are set to http://wordpress.markmurphy.ca

Again, the issue is that wp-admin redirects to the login page. The redirect query string in the url when taken to the login page is set to http://wordpress.markmurphy.ca/wordpress/wp-admin

it should be setting it to this?
http://wordpress.markmurphy.ca/wp-admin

I’ve already contacted godaddy support. They told me that they have no way of troubleshooting this and that was that. Thanks………..