I am basically copying the WP login form into an ajax div that will be made visible with a click toggle. In your SFC Login Button function, you have
if ($action == 'login')
to allow the button to load. I changed it for my application, and it works fine. Basically since I am loading the form on ajax calls, it wont always have the request param $action set.
Was wondering if this condition is required, because I want to keep any updates you make easy to upgrade and not break anything I changed.