Rules - Page redirect not working on "after saving new content" Using Drupal 7.7 and Rules 7.x-2.0-beta3

The rule set up is:


Event: After saving new content
Conditions: Content is of type news
Actions: redirect to url news


When adding a news story and clicking submit, the redirect does not happen and I get left with a 'Connection was reset' error in the browser.

Had anyone else this issue? 
Any ideas how to overcome this?
There are a couple of serious bugs in the Rules 7.x beta (frequent 503 errors). Release candidate just came out that fixes these bugs. Try an update to the latest module version and see if the error goes away.