It looks like the form action is generated wrong on login.php.
<form class="Basic_Default" id="LogIn_Basic_Default" name="LogIn_Basic_Default" method="post" action="local78mem/new_members/login.php">
should probably just be:
<form class="Basic_Default" id="LogIn_Basic_Default" name="LogIn_Basic_Default" method="post" action="login.php">