I am having the same kind of login problems. When you log in it says you are not logged in and takes me back to the login page. At the bottom of the log in page it says that I am logged in, and all of the site content is available.
I tried the session directory fix, created a session dir and added .htaccess. I verified that sessions are being stored in that directory but it doesn't fix the problem. Also turned off secure forms trying to make everything as generic as possible, and don't have any firewall software installed.
Here's where it gets really weird. After browsing several links on the site I get a 404 error, page can't be found. I can close the browser (IE6 or NS7) completely and reopen it and still can't access the site. So then I delete cookies in the browser and everything works again, for awhile...til the 404 error pops up again.
Server Details:
Apache Version - 1.3.27 (Unix)
PHP Version - 4.3.1
MySQL Version - 4.0.13
I hope someone can shed some light on this problem....