This isn't documented in the Wiki. What is the password? When I ran VMWare and loaded Ubuntu, it didn't ask me to create an account or setup a password.

OK, I think I played around and got past the password issue but now I'm getting "Suitable USB device not found, waiting" and it never finds the 770.

Here are the steps I followed:

1) Switch off the Nokia 770
2) Unplug it from a charger
3) Connect it to your computer via USB directly
4) execute ./flasher --enable-rd-mode --reboot
5) "Suitable USB device not found, waiting" is displayed on the console
6) Switch on the 770 using the power button while holding down the home button

The "Nokia Mobile Phones USB Device" is displayed on the title bar.