Security Basics: Encrypted or Not Encrypted

[amatachick () gmail com]

I've run into this issue a few times now and would like to know what y'all think. Here is the situation: A website not 
using SSL has a login page. As soon as credentials are entered on this page they are redirected to a site using SSL. 
Here is a specific example of the code on one such site:
<form name="loginpersonal" method="POST" action="https://secure.sitename.com/engine/login/login.asp"; onSubmit="return 
checkLoginForm(this);">
   <input type=hidden name=IsPostback value=1>

Now, from what I understand, the login credentials would still be unencrypted while traveling to the secure site. So 
that would negate the effect of having it redirect to a secure site in the first place. Right? I keep brining up this 
fact but all I get back is that it's being redirected so it's secure. I feel like I'm taking crazy pills here so I'd 
appreciate some feedback. Am I wrong? If I am I can handle that, I'd just like to know. Thanks!