Login form on the static front page

Thank you for this wonderful plugin! I’ve been using it for more than a year now, no

I want to put the login form to my static front page. I’ve used this code:

<?php theme_my_login( array( 'default_action' => 'login', 'show_title' => false, 'instance' => 1, 'show_reg_link' => false, 'login_template' => 'login-form-home.php' ) ); ?>

Here is the problem:

1. If leave the action field of the form as it is, then any unsuccessful login attempt redirects me to the login page with no error message and no button, only two fields.

2. If I set the action field to my front-page then any unsuccessful login attempt shows error messages as it should on the front page, but if I enter correct credentials then it just redirects back to the front page without logging me in.

Can you please point me to the right direction to fix this? Thanks a lot!

http://wordpress.org/plugins/theme-my-login/