I have a page called Login set up within the WP admin and the tml plugin is pointing to that page id correctly. Login then contains
<?php get_header(); ?> <div id="login"><?php theme_my_login( array( 'show_title' => false )); ?></div> <?php get_footer(); ?>
The login process is working fine, but when I click the link for lost password, the page redirects to http://www.mysite.com/login/?action=lostpassword, but it shows the login page instead.
You can see it here: http://www.carolina-business.org/login/
I did tinker with the login-form.php file after copying it into my theme directory, but even when using the original code, I'm getting the same results.
BTW, as of this writing you're site isn't available. Hope this is temporary! :)