John, few comments about your script:
1) I wrote the original
2) I would move the LNAME code up to the top of the script, its really a configuration, not a start thing...
3) the LNAME test condition needs to be change to $2 instead of $1 since you added start/stop to the cmdline
4) when you stop minilogin, im pretty sure you need to be killing wine, not MiniLogin.exe. But that might upset things if they are using something else in wine... might wanna grep for the pid or something.
Angelox: booting zones directly really isnt advised... especially on linux... the launcher is designed to automatically inject delay into zone booting to prevent your problems.