I could just do it the easy way and go to app manager where everything works fine....

... But, I want to try and get to grips with the terminal.

I opened up X-Term and then I entered the following:
I was then prompted for a password.

This confuses me because as far as I am aware I havn't set any passwords. Also, when I did try to enter a couple of passwords the cursor did not move as I typed the letters to indicate it was actually inputting what I had typed.

Is there some kind of default password? what do I need to do? and why? - I dont need any passwords in the app manager, so why should I need one here?