I figured out a workaround!
Make sure cookies are enabled for our forum. Cookies in dillo disabled by default.
Edit /home/you/.dillo/cookiesrc to look like this:
Then open dillo and attempt to login as usual.
It should fail as before.
Click your mouse in the address field so the flashing cursor is there. Hit Enter. It will act as a redirect and pass the final info to the server and log you in.