I have NetworkActivityIndicatorVisible using MonoTouch.Dialog working in my
projects. I think your problem has nothing to do with MonoTouch.Dialog. I
think you need to put your login code on a new thread so that it doesn't
lock up the UI thread. Try something like the following. Haven't tested it
but you get the idea.

StyledStringElement btnLogin = new StyledStringElement("Login", delegate {
LoginAsync(); });

public void LoginAsync()
{
    UIApplication.SharedApplication.NetworkActivityIndicatorVisible = true;
        
    // Start long runing operation on new thread so we don't lock up the UI.
    Thread thread = new Thread(new ThreadStart(BeginLogin));
    thread.Start();
}

private void BeginLogin()
{
    try
    {
        // Load data from internet here.
     }
    finally
    {                           
        // Invoke on main thread if EndLogin updates UI. 
        InvokeOnMainThread(EndLogin);
    }
}

private void EndLogin()
{
    // Update UI here is OK because EndLogin will be InvokeOnMainThread.
                
    // Reset NetworkActivityIndicatorVisible.
    UIApplication.SharedApplication.NetworkActivityIndicatorVisible = false;
}

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