Change SSH Password
Changing the SSH password is not a bad idea. The default password is 'alpine', and everyone knows it. As of this writing, there are warnings not to use the 'passwd' function of the BSD Subsystem.

This function allows you to very easily change your password.
It performs the following steps (which you can do manually as well:)
  • ask for a new password
  • run openssl passwd -crypt -salt /s <password> in the shell (Terminal)
  • copy the resulting string into /etc/master.passwd on the phone
    (between the first two colons of the root and mobile entries)
Note: I'm unfortunately not a networking expert - just making recipes simpler to follow...
A couple of times my iPod froze when trying to change the password, and it stopped being accessible to iFuntastic too. I had to enter DFU mode manually and then restore the phone. It has not happened since; just a heads up:

How to enter DFU Mode manually:
hold down both the 'Sleep/Wake' and 'Home' buttons until the screen goes black, then let go of 'Sleep/Wake' and keep holding the 'Home' button until iFuntastic shows the status as 'DFU Mode' (or iTunes, if running, detects the phone.)

You can click HERE to keep ssh from asking for your password every time (or do it manually.)
iFuntastic will generate a new rsa key pair for an empty password (ssh-keygen -t rsa -f id_rsa -N "") then copy the file ~/.ssh/id_rsa.pub to /var/root/.ssh/authorized_keys on the phone, and finally set the permissions (chmod 0777 ~/.ssh, chmod 666 ~/.ssh/authorized_keys and chmod go-w /private/var/root.)