Personnally, we are trying to apply the security fixes as soon as possible but in this particular case, we have noticed several issue with Joomla 1.5.16 that may result by problem of login.
This also happen with Jms Multisites 1.0.x and Jms Multisitse 1.1.x that can no more login once you have installed the Joomla 1.5.16.
See also Joomla bug tracker where an alternative fix is published
joomlacode.org/gf/project/joomla/tracker...racker_item_id=20221
It consists in adding a line
$this->_createSession($session->getId());
just after the "sessions->fork" one.
This also fix the bug introduced in Joomla 1.5.16.