As noted, there's still no image attached. After you upload it, please click the green arrow to insert it into the post.
Either way, I just looked through our code and you're correct. When the "Modal Close Button" option is set to show, we use the module's title in the bar for the close button. Otherwise, there would be a big blank space there. I'd recommend disabling that setting to hide the text. The modal can be closed by clicking anywhere else on the page, just like on this site. The other options would be:
* Try setting the title to " " and see if that works. nbsp; is just the space command and it would just create the title with a space, which would make it invisible.
* Use a template override to hide that text (we can help you with this)
I have another question. I do not want to have separate "Login" and "Register" buttons. Can I hide "Register" button and change the "Login" button with "Login/Register" single button.
We have an option for "Show Register Button". You can set that to hide to get rid of the register button altogether or show it just in the modal popup or some other options. There's a language string in our mod_sclogin.ini language file you can use to change the Login button text to whatever you want as well.
I hope that helps,
Alex