Option 1: Use the CustomerError module
As per the "... is there another login module ..." part of your question, you may want to look at the CustomError module. Here is a quote about it (from its project page):
... allows the site admin to create custom error pages for HTTP status codes 403 (access denied) and 404 (not found), without the need to create nodes for each of them.
- Configurable page title and descriptions.
- There are no author and date/time headers as with normal nodes.
- Any HTML formatted text can be be put in the page body.
- The error pages are themable.
- Users who are not logged in and try to access an area that requires login will be redirected to the page they were trying to access after they login.
- Allows custom redirects for 404s.
More specific, related to the LoginToboggan module, this is how the CustomError module integrates with it (quote from its README.txt, bold markup added here):
If this module is enabled, it can enhance CustomError's handling of
access-denied messages, but you have to be careful to set them up to
work together correctly.
These two modules both attempt to take over handling of system 403
("access denied") messages, and can conflict. CustomError does it by
asking you to go to "admin/config/system/site-information" and
manually setting the "Default 403 (access denied) page" to
"customerror/403", whereas LoginToboggan sets that same field to
"toboggan/denied" automatically (overwriting any other value that
was there), when you enable its "Present login form on access denied
If you are using CustomError with LoginToboggan, you should allow
LoginToboggan to perform this take-over (in other words, don't set
the "Default 403 (access denied) page" to "customerror/403"). This
way, if someone attempts to access a page that they don't have
access to, LoginToboggan will first give them a chance to log in if
they haven't yet. If they still don't have access to the page,
CustomError then takes over from LoginToboggan (by overriding one of
its theme functions), displaying its customisable messages for
So using what is described in this last (bold) sentence, you may get it to work the way you'd want to (or at least come closer to the solution you're looking for).
Option 2: Retry with the Rules module
Your (failed) attempt to use the Rules module, might be because you have NOT used event "Drupal is initializing". You may want to retry, using this "Drupal is initializing" event. That might help to ensure that the rule gets trigger 'BEFORE Logintoboggan has a chance to take precedence' (so that you are NOT too late).
For a sample of a Rule (in export format) using this "Drupal is initializing", refer to my answer to the question "How to redirect user using Rules when user visits a link with view?".