If PHP error/notice messages get into the (XML) response stream headed back to the browser, the XMLHttpRequest object can throw a parse exception. This looks (to synapp2.js) like an authentication failure and the login message appears.
With version 0.1.7, there is at least one place in action.php that throws a warning (notice) under some conditions (line 90 if you must know). It didn't get caught because a developer, who wasn't getting enough sleep, left the HTML display_errors messages turned off in his PHP configuration while he was testing. (He as been severely disciplined and will have time to think about this while he heals and learns to type with nine fingers.)
In the mean time, if you see this problem, try turning off display_errors or setting the error_reporting level to E_ALL & ~E_NOTICE