Sorry, I just saw this post.
I actually have an update (1.1) coming very soon that no longer assumes you are installed at root. I apologize for not releasing earlier, but work has been crazy busy.
@mejjad, you found 1/2 of the problem. There are actually 2 redirects, one for if you are already are logged in and the one after you enter your login info.
line 79 in hidden-login.php (logging in)
line 69 hidden-login.js (if already logged in and pressing key code)
the one at line 79 should be correct for you by default (since it pulls the blog address and add wp-admin
the one at line 69 could just be hardcoded to what you want, something like…
window.location.href = ‘http://localhost/~something/WP/wp-admin’
hopefully that works, but I have to run right now since I am at work. As I said, this will be address in a clean manner in my 1.1 update, which should be coming out within the next week