Intranet + Multiple Sites/Single Server + URL issues

Hello All,

Scenario: I two sites (on the same server) and I want to make them available
to our users on our LAN. I'd like the users to type in site1 as the URL in
their browser to get to the first site, and site2 if they'd like to go to the
second site.

What I've done: I created a CName record of the FQDN for the server of both
sites however they'll just point to the root directory not to each Virtual
Directory housing my sites. I was able to do a redirect from the root
directory to site1 however then I wasn't able to access site 2 unless I did
something like http://server/site2 in the browser.

I'm sure many have the answer to the first part, the trickier part is, how
do I ensure that the URL doesn't show the full paths to the directories?
Instead only show site1 or site2 the whole time when users are navigating
through the sites?

Any and all help appreciated,
Helaman