subdomain on sbs 2011 iis7 constant 404 error

so i have a website www.example.com hosted with godaddy. i also have an sbs 2011 server running exchange, company website, ad, basically everything. our dns for example.com is also on godaddy. remote.example.com points to company website on sbs server. i have a few, i guess they are web apps, in iis7 under remote.example.com/example1. they all work fine. i have a ssl certificate for remote.example.com installed and works fine.

i am trying to host a new site on iis7 at example2.example.com. i have made a new A record in the godaddy dns manager of example2 that points to the ip address of the sbs server. if i ping example2.example.com it resolves to the correct ip address.

when i open a web browser and go to example2.example.com i get the iis7 image. when i go to example2.example.com/home.html i get a 404 error

if i go to remote.example.com/example/home.html the page loads and works perfectly fine. the folder for the website is in inetpub/wwroot/example2

I have set bindings for http example2.example.com port 80 and www...

also when i open browser and go to http://example2.example.com/home.html it automatically changes to https i do not have a cert for this subdomain and i do not need to use ssl so i want to strictly use http. i have disabled the http to https redirect module for the example2 site

what the heck am i missing here. it must be something simple