The certificate question isn't actually related to IIS.
If you create any self-signed certificate with intended purposes EKUs including Server Authentication, it'll work with IIS.
So all you really need to do is create that certificate, then convince all the clients to trust it too.
You can use the old SelfSSL tool to create the cert, at least:
http://blogs.iis.net/chrisad/archive/2006/11/14/windows-server-2003-service-pack-1-and-iis-6-0-host-headers-and-ssl.aspx
selfssl /s:{SiteId} /N:cn="*.contoso.com" /q
You should be able to skip the /s:{SideID} part, to just generate a local certificate, then hook it up through the IIS 7 InetMgr console as usual.
Aside: If you've got the metabase compatibility pack and IIS 6 scripts installed, you may be able to use the Site ID and have it set up for you, exactly as per the instructions there.