1) Open the bindings page and click the plus button, select URL Variable and name it "failedLogin"
in the access rules manager, create a failed login rule. for the value, click the lightning bolt icon, set the Criteria to = and the Compare to to 1
Add your failed login message to the page, then use the security assist show region behavior wit the failed login rule.
2) we don't offer ajax for validating the email address, you would need to add that manually. The instructions in that text file say to add the code in the head of the document.
the $(document).ready(function() { function code needs to be placed in a script tag.