it's not possible to do a JSON callback with the jquery plugin. It appears that the callback function is missing the return parameters.
Current:
<form onsubmit="jQuery.ajax({type:'POST',dataType:'html',data:jQuery(this).serialize(),beforeSend:function(){$('#go').addClass('loading')},complete:function(){updateJSON(request, json)},url:'/public_dev.php/member/login'}); return false;" action="/public_dev.php/member/login" method="post"
but should be:
<form onsubmit="jQuery.ajax({type:'POST',dataType:'html',data:jQuery(this).serialize(),beforeSend:function(){$('#go').addClass('loading')},complete:function(request, json){updateJSON(request, json)},url:'/public_dev.php/member/login'}); return false;" action="/public_dev.php/member/login" method="post"