[sunfighter]

Now that you have added md5 encoding make sure your DB reflects this.
I see you are trying to go to another page with $(document.location = "members.php");
I didn't enclose that, but I did fix the jq ajax:
Use this

<script type="text/javascript">
$(document).ready(function() {
	$("#login").click(function(){
		var username=$("#username").val();
		var password=$("#password").val();
	    $.post("loginpost.php",
	    {
	      username:username,
	      password:password
	    },
	    function(data,status){
	      $('.errors').html(data);
	    });
	});
});
</script>