It sounds like you are in an infinite loop.
It will redirect, but when the redirected site is loaded it redirects again. nothing breaks the cycle.
Which IP address are you using? Client.IP? that will never change and you will always hit the redirect rule.
What happens when you do a rule like?:
URL.Host equals www.example.com
After the redirect, the URL is no longer example.com and will not fire the redirect again.
One other thing comes to mind.
If you are trying to force a Client.IP to only go to the one site no matter what and not be able to break out of that site, you could do;
Client.IP = 126.96.36.199 AND
URL.Host does not equal www.example.com
That should at least prevent the loop you are experincing.