WP multisite IIS7, bug with pagination and url rewrite

Using Multisite WordPress (3.3.2) on IIS7 with the standard URL Rewrite rules causes issues with trailing slashes and the pagination links

For example, if you visit a multisite blog with a URL like this: http://mydomain.com/bloga (without trailing slash) the ‘Older Entries’ link becomes http://mydomain.com/bloga/bloga/page/2/ — it doubles up the blog slug in the URL causing a 404 error. Additionally any previous page link 1 2 3 4 5 etc have bad URL’s as well.

If you visit http://mydomain.com/bloga/ (with trailing slash) the ‘Older Entries’ link is correctly http://mydomain.com/bloga/page/2/

I have found the issue to be present across multiple servers, with fresh, theme-less and plugin-less installations of WordPress

The standard URL Rewrite rules are as follows:

<?xml version="1.0" encoding="UTF-8"?>
    <configuration>
        <system.webServer>
            <rewrite>
                <rules>
                    <rule name="WordPress Rule 1" stopProcessing="true">
                        <match url="^index\.php$" ignoreCase="false" />
                        <action type="None" />
                    </rule>
                    <rule name="WordPress Rule 2" stopProcessing="true">
                        <match url="^([_0-9a-zA-Z-]+/)?files/(.+)" ignoreCase="false" />
                        <action type="Rewrite" url="wp-includes/ms-files.php?file={R:2}" appendQueryString="false" />
                    </rule>
                    <rule name="WordPress Rule 3" stopProcessing="true">
                        <match url="^([_0-9a-zA-Z-]+/)?wp-admin$" ignoreCase="false" />
                        <action type="Redirect" url="{R:1}wp-admin/" redirectType="Permanent" />
                    </rule>
                    <rule name="WordPress Rule 4" stopProcessing="true">
                        <match url="^" ignoreCase="false" />
                        <conditions logicalGrouping="MatchAny">
                            <add input="{REQUEST_FILENAME}" matchType="IsFile" ignoreCase="false" />
                            <add input="{REQUEST_FILENAME}" matchType="IsDirectory" ignoreCase="false" />
                        </conditions>
                        <action type="None" />
                    </rule>
                    <rule name="WordPress Rule 5" stopProcessing="true">
                        <match url="^[_0-9a-zA-Z-]+/(wp-(content|admin|includes).*)" ignoreCase="false" />
                        <action type="Rewrite" url="{R:1}" />
                    </rule>
                    <rule name="WordPress Rule 6" stopProcessing="true">
                        <match url="^([_0-9a-zA-Z-]+/)?(.*\.php)$" ignoreCase="false" />
                        <action type="Rewrite" url="{R:2}" />
                    </rule>
                    <rule name="WordPress Rule 7" stopProcessing="true">
                        <match url="." ignoreCase="false" />
                        <action type="Rewrite" url="index.php" />
                    </rule>
                </rules>
            </rewrite>
        </system.webServer>
    </configuration>

Has anyone seen this problem or know of a solution? Thank you