Alright, I go to my blog root... everything's fine. I click Login, and I login... everything's fine. I do what I need to do in the admin area, and click View Site » (without logging out). I'm back to my blog root, and rather than seeing a Site Admin link in the sidebar (as I did with v1.5), I still see a Login link! If I add /wp-admin/ to the URL, it forwards me to the dashboard (which it should, since I'm still logged in)... Enabling the Remember Me option in the login screen has no effect.
In sidebar.php, it is using the wp_loginout() function, but obviously the cookie is not being detected in the blog root.
Does anyone have an idea as to what could be causing this?