This script is based on my previous script "Show/Hide Login Panel with Mootools 1.2" but now works with jQuery 1.3.2 instead of Mootools 1.2
Panel has been redesigned to be "slicker".
Panel overlaps content instead of "pushing" it.
Images are transparent.. and work in IE6.
Login button that slides the panel down changes from "Log In | Register" to "Close Panel" on click and I have added some nice rollover images: