Well, I have this problem.

I fixed it with the popup, and redirection.

only popup: doesn't work
popup & redirection: works
redirection only: WORKS!

at least it does for me.

Solution:

On "HTTPS (encrypted) login, register and lost password" option at the bottom of the CB Login Module, select "use https for posting login then same". Pretty sure it'll mean you have to have an SSL, but I do, so it worked for me.

More Info:

For anyone debugging this, the particulars are below.
1) happens in IE7 and Firefox 2.0.0.7
2) upon first login within the fresh browser, the login box appears again as if the login didn't work
3) it did
4) if you go to any other page, you're logged in
5) even the 'users online' shows that you did
6) and the user links are available
7) it seems like the logged in state isn't updated when the CB Login is created
8) the popup works
9) the redirect works
10) they're both a really bad work around
11) but, that shows us that if you give it a pause, the 'logged in' state gets updated for the CB Login (which must get compiled before the rest of the modules).
12) so...if you're feeling crafty...(which I'm not, but hey...I took the time to let you know what I do)...then maybe you could figure out how to set the CB Login further back in the order or script a 1 second pause at login

thanks for all your help I've read in this forum.
i love you guys!

ok...some reason, it's not working now...this isn't good. Sorry to waste anybody's time on that 'solution'

oh and a quick correction on the menus...doesn't display the user ones...but click any link...and you're logged in...log out and try again...in on the first try.

hope it helps