If you replace the session.inc from version 2.3.7 you will not have the redirection issue, but you will slowly accumulate a large amount of orphaned cookie files in your temp directory. If you change the session temp location you can see the files grow
(ini_set('session.save_path', dirname(__FILE__).'/../tmp/'); in session.inc).
But at least the 2.3.7 session.inc does not have the issue of always asking for a log in.
I have 2.3.10 working on a win 7 IIS 7 with MySQL all fine, it is just the redirect issue which would also cause a build up of cookie files with the 2.3.10 session.inc as well as still causing the redirect.
Cheers,
Jason