I have two domains: domain1.com and domain2.com. I also have two GoDaddy SSL certificates (one cert for each domain). I only have one IP. I'm running IIS 7 on a Windows Server 2008 R2 standalone server in a workgroup, not a domain.
How can I bind each certificate to appropriate domain?
In IIS 7, you can only have two SSL-enabled sites on the same listening port if they're using the same certificate - this would need to be a wildcard or subject alternate name certificate which covers all of the names.
Since your sites don't share a domain, look into getting a SAN cert (some vendors, including GoDaddy, call it a "UCC" cert for some reason), or more IP addresses for your existing certs.
In the binding for 443/SSL in the site config, look for the tick box to use Server Name Identification (SNI)
SNI support enables multiple SSL bindings on single IP addresses.