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I'm a big fan of light boxes -- they let you get you stuff even more copywriting stuff above the fold without burying the signup form beyond a page load. My feeling is that they work better than standard signup forms but I don't have any A/B tests to back that up at the moment. Hmm, must put that on my list...
I like the look of light boxes, but I've had some serious usability issues.

I had to train myself not to close my entire browser window when all I wanted to do was dismiss the lightbox modal. The first few times I saw one, I reflexively closed my browser window and then... "oops!".

With jquery UI:

  <div id="foo"></div>

  $('#foo').dialog({modal: true});
One could tweet jquery tutorials, that's how beautiful it is.