The patch to remove the paragraph, provided at the ifauth plugin page1), didn't work well for me. As long as the plugin will be used in a floated text block, it creates a line break. So I slightly changed the code of syntax.php:
# diff --strip-trailing-cr syntax.orig syntax.php 143,144c142,143 < if (stristr(substr($r,-7)," \n</p>\n")) { < $r = substr($r,0,-7); --- > if (stristr(substr($r,-7),"\n</p>\n")) { > $r = substr($r,0,strlen($r)-6);
As I am not a php specialist I did it by try and error, but it works - at least for me on Linux. Btw I converted line endings to Unix style.
Download: Patch    (md5sum)
Update:\ I recommend to use my successor, the plugin isauth instead!