I released a new version 2.7.6.1 last night because I fixed some bugs and added settings for all the error messages. I also used completely different WP hooks for the login page. (my thinking is these hooks are less likely to interfere with other login plugins, but nothing can be for sure) Anybody who was having trouble with 2.7.6, try 2.7.6.1
If it is not working for you, you must test for a plugin conflict.
Here is how to troubleshoot which plugin is conflicting:
Look on the Admin – Plugins – menu.
Temporarily deactivate (not uninstall) all your other plugins. Leave this one still activated.
Does it work now? If yes, Activate the other plugins one by one to determine which one conflicts. Which one was it?
If you still have trouble I need to know:
What is the error or problem?
What steps to reproduce the problem?
Which form is it doing that on? login, comment, registration, or lostpassword
What version of WordPress?
What theme?
Are any other plugins causing it? (deactivate all the others to see if the problem goes away)