White screen when wrong pass/user entered

Hello,
There must definitely be some kind of a bug or conflict in Multisite privacy v1.1.
When activated and a user (any user) types the wrong pass or username, what one gets is a white screen.
Please have look at the source code

<!DOCTYPE html>
<html lang="en-US" dir="ltr" xmlns="http://www.w3.org/1999/xhtml">
<head>
<meta content="text/html; charset=UTF-8" http-equiv="Content-Type">
<title>Test Site › Log In</title>
<link id="wp-admin-css" media="all" type="text/css" href="http://mydom.com/wp-admin/css/wp-admin.css?ver=20111208" rel="stylesheet">
<link id="colors-fresh-css" media="all" type="text/css" href="http://mydom.com/wp-admin/css/colors-fresh.css?ver=20111206" rel="stylesheet">
<script src="http://mydom.com/wp-includes/js/jquery/jquery.js?ver=1.7.1" type="text/javascript">
<script src="http://mydom.com/wp-includes/js/swfobject.js?ver=2.2" type="text/javascript">
<script src="http://mydom.com/wp-content/plugins/wpms-global-content/assets/js/script.js?ver=3.3.1" type="text/javascript">
<script src="http://mydom.com/wp-content/plugins/wp-tooltip/js/jquery.tipTip.minified.js?ver=1.3" type="text/javascript">
<script src="http://mydom.com/wp-content/plugins/wp-tooltip/js/wp-tooltip.js?ver=1.0.0" type="text/javascript">
</head>
<body>
<div id="tiptip_holder" style="max-width: 200px;">
</body>
</html>

And this is without he Multisite privacy:

<!DOCTYPE html>
<html xmlns="http://www.w3.org/1999/xhtml" dir="ltr" lang="en-US">
<head>
	<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
	<title>Test Site › Log In</title>
<link rel='stylesheet' id='wp-admin-css'  href='http://mydom.com/wp-admin/css/wp-admin.css?ver=20111208' type='text/css' media='all' />
<link rel='stylesheet' id='colors-fresh-css'  href='http://mydom.com/wp-admin/css/colors-fresh.css?ver=20111206' type='text/css' media='all' />
<script type='text/javascript' src='http://mydom.com/wp-includes/js/jquery/jquery.js?ver=1.7.1'></script>
<script type='text/javascript' src='http://mydom.com/wp-includes/js/swfobject.js?ver=2.2'></script>
<script type='text/javascript' src='http://mydom.com/wp-content/plugins/wpms-global-content/assets/js/script.js?ver=3.3.1'></script>
<script type='text/javascript' src='http://mydom.com/wp-content/plugins/wp-tooltip/js/jquery.tipTip.minified.js?ver=1.3'></script>
<script type='text/javascript' src='http://mydom.com/wp-content/plugins/wp-tooltip/js/wp-tooltip.js?ver=1.0.0'></script>
<meta name='robots' content='noindex,nofollow' />
<script type="text/javascript">
addLoadEvent = function(func){if(typeof jQuery!="undefined")jQuery(document).ready(func);else if(typeof wpOnload!='function'){wpOnload=func;}else{var oldonload=wpOnload;wpOnload=function(){oldonload();func();}}};
function s(id,pos){g(id).left=pos+'px';}
function g(id){return document.getElementById(id).style;}
function shake(id,a,d){c=a.shift();s(id,c);if(a.length>0){setTimeout(function(){shake(id,a,d);},d);}else{try{g(id).position='static';wp_attempt_focus();}catch(e){}}}
addLoadEvent(function(){ var p=new Array(15,30,15,0,-15,-30,-15,0);p=p.concat(p.concat(p));var i=document.forms[0].id;g(i).position='relative';shake(i,p,20);});
</script>
</head>
<body class="login">
<div id="login"><h1><a href="http://mydom.com/" title="mydom.com Sites"><span class="hide">Test Site</span></a></h1>
<div id="login_error">	<strong>ERROR</strong>: The password you entered for the username <strong>testusers</strong> is incorrect. <a href="http://mydom.com/wp-login.php?action=lostpassword" title="Password Lost and Found">Lost your password</a>?<br />
</div>

<form name="loginform" id="loginform" action="http://mydom.com/wp-login.php" method="post">
	<p>
		<label for="user_login">Username<br />
		<input type="text" name="log" id="user_login" class="input" value="testusers" size="20" tabindex="10" /></label>
	</p>
	<p>
		<label for="user_pass">Password<br />
		<input type="password" name="pwd" id="user_pass" class="input" value="" size="20" tabindex="20" /></label>
	</p>
	<p class="forgetmenot"><label for="rememberme"><input name="rememberme" type="checkbox" id="rememberme" value="forever" tabindex="90" /> Remember Me</label></p>
	<p class="submit">
		<input type="submit" name="wp-submit" id="wp-submit" class="button-primary" value="Log In" tabindex="100" />
		<input type="hidden" name="redirect_to" value="http://mydom.com/wp-admin/" />
		<input type="hidden" name="testcookie" value="1" />
	</p>
</form>

<p id="nav">
<a href="http://mydom.com/wp-login.php?action=register">Register</a> |
<a href="http://mydom.com/wp-login.php?action=lostpassword" title="Password Lost and Found">Lost your password?</a>
</p>

<script type="text/javascript">
function wp_attempt_focus(){
setTimeout( function(){ try{
d = document.getElementById('user_pass');
d.value = '';
d.focus();
d.select();
} catch(e){}
}, 200);
}

if(typeof wpOnload=='function')wpOnload();
</script>

	<p id="backtoblog"><a href="http://mydom.com/" title="Are you lost?">? Back to Test Site</a></p>
	</div>

<link rel='stylesheet' id='jquery.tipTip-css'  href='http://mydom.com/wp-content/plugins/wp-tooltip/js/tipTip.css?ver=1.3' type='text/css' media='all' />
<link rel='stylesheet' id='wp-tooltip-css'  href='http://mydom.com/wp-content/plugins/wp-tooltip/wp-tooltip.css?ver=1.0.0' type='text/css' media='all' />
<script type='text/javascript' src='http://mydom.com/wp-content/plugins/lightbox-plus/js/jquery.colorbox-min.js?ver=1.3.17.2'></script>
<div class="clear"></div>
</body>
</html>

Can you please have a look? It looks like almost the whole body section is missing.
Thank you, marikamitsos