NameVirtualHost only works within main DNS

Using Windows XP Pro
Apache 2.0.52

I am hosting a website on my own pc at home.

I have registered 2 seperate DNS and both are pointing to my IP.

The problem I have is this, I can connect to mysite1.com fine but when I try to add mysite2.com it will only work if I place the folder containing this 2nd site within the first site.

This is what I added to my httpd.conf

NameVirtualHost *:80

<VirtualHost *:80>
ServerName www.mysite1.com
DocumentRoot "C:/apache2/htdocs/mysite1"
</VirtualHost>

<VirtualHost *:80>
ServerName www.mysite2.com
DocumentRoot "C:/apache2/htdocs/mysite2"
</VirtualHost>

When I try to connect to www.mysite2.com
I notice the status bar in I.E. displays www.mysite2.com for a brief moment then it changes to www.mysite1.com/mysite2/

This is why I tried moving the whole mysite2 folder inside the mysite1 folder and now it loads ok.

The problem I have with this is that all the links in the 2nd site have the first site stuck before it

I hope this makes sense as it's the only way I can think to explain.