I tried editing that line, but it only cause things not to work at all.
This is the page the site gets stuck on, on first login after an install. As I said, it will get to the authenticated front page and seem fine. However, when you click to go anywhere, it redirects to an edit user form (probably to get the missing info about the admin user).
Here is where it gets stuck: http://test.authenticeducation.org/user/edit.php?id=2&course=1
Here is the source of that page (after forcing it to stop loading, because it won't stop on its own):
http://test.authenticeducation.org/viewsource_m254.html
You'll notice the output stops in the middle of a script that gets output from /lib/formslib.php - its a big output statement that starts on line 2139 ($js = '...).
Its hard for me to believe that this isn't important information.
Also, no, no .htaccess file.