IIS8 + URL Rewrite 2.0 + Tracing = Error 404

Hi guys,

Trying to rewrite this: http://localhost/hello2 into this:http://localhost/index.php?redirect=hello2

Stock install of IIS8 on Win8 (with virtual switch for hyper-v enabled).

Here is the screenshot of Tracing Log: http://i.imgur.com/zGtgcdX.jpg

Here is the screenshot of Error 404: http://i.imgur.com/fafKQHc.jpg

Here is my web.config file:

<system.webServer><rewrite><rules><rule name="rewrite" stopProcessing="true"><match url="http://[^/]+/([a-zA-Z0-9]+)/?$" /><action type="Rewrite" url="index.php?redirect={R:1}" /><conditions><add input="{REQUEST_FILENAME}" matchType="IsFile" /><add input="{REQUEST_FILENAME}" matchType="IsDirectory" /></conditions></rule></rules></rewrite><tracing><traceFailedRequests><add path="*"><traceAreas><add provider="ASP" verbosity="Verbose" /><add provider="ISAPI Extension" verbosity="Verbose" /><add provider="WWW Server" areas="Authentication,Security,Filter,StaticFile,CGI,Compression,Cache,RequestNotifications,Module,FastCGI,WebSocket" verbosity="Verbose" /></traceAreas><failureDefinitions statusCodes="404" /></add></traceFailedRequests></tracing></system.webServer>

Am I missing something?!