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0: Install MobileTerminal Package

1: Run MobileTerminal

This program will be on your SpringBoard are called "Terminal".

2: Obtain Administrator Access

Run "su root" and provide the root password. The default password as provided by Apple is "alpine".

Here I also run "cd" only to shorten the otherwise very long prompt.

iPhone:~ mobile$ su root
iPhone:/var/mobile root# cd
iPhone:~ root#

3: Change the root Password

Run "passwd" and type in your new password twice. Please note that your keypresses will not be displayed on the terminal screen (for security).

iPhone:~ root# passwd
Changing password for root.
New password:
Retype new password:
iPhone:~ root#

4: Change the mobile Password

This is the regular user account on the device. Run "passwd mobile" and repeat as directed above.

iPhone:~ root# passwd mobile
Changing password for mobile.
New password:
Retype new password:
iPhone:~ root#

5: Close MobileTerminal

Congratulations! Your job is done!