Original author doesn't appear to have plans to fix this plugin!!
Bottomline is WP-Login is BROKEN.. It flat out just doesn't work the way it should.. Period.. Read the posts in the support forum about this plugin.. It has MANY issues!!!
- Registration and the lost password links don't work
- Code is LITTERED with deprecated calls
- The plugin as written currently will work the way it's supposed to work ONLY on sites where WordPress is installed in the root of the site (http://www.mysite.com/), but not in a subfolder inside the root (http://www.mysite.com/myblog/).
LOTS more wrong
The current author promised months ago to fix this plugin.. Not only has he not fixed this plugin, he has since removed his site's support forum, page comments, and ANY reports on his website of this plugin's MANY shortcomings.. (His WP-Login page would give you the false impression that this plugin is working with NO indication that the author himself acknowledged that there are serious functional issues with this plugin)