WordPress site in subfolder of another wordpress site .htaccess issue

I have a wordpress site in a folder
/site1
That site is site1.com

I have another wordpress site (totally separate install) in a subfolder of that site
/site1/site2
That site is site2.com

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Ideally I would like to be able to access this site by typing either of these two things…

site1.com/site2
or
site2.com

So far, that works. However, I can’t do something that’s really important.

I can’t type, say
site2.com/forums and get to my forums. I get an internal server error. The only way to get to the forums is to go all the way back to site1.com/site2/forums

Can someone tell me what needs to change in my .htacces, wp-config, or wordpress dashboard to make this happen (and in what subfolder to make these changes?)

.htaccess for site1

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

# END WordPress

<Files 403.shtml>
order allow,deny
allow from all
</Files>

.htaccess for site2

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /site2/
RewriteRule ^index.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /site2/index.php [L]
</IfModule>

# END WordPress

As stated in the comments, both the wp url and site url are http://site1.com/site2 as doing anything else broke the sites.

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