By default when you type in the password at the text prompt, instead of printing asterisks or bullets, it just doesn't print anything. So if you haven't already, do the standard routine of typing it in slowly, checking the caps lock, etc.
If that doesn't doesn't solve the password problem then I'm afraid I'll be no help at all because I'm not familiar with the "Linux VGA =0" command. But I will say that you're probably getting the text based screens instead of the graphical interface because the graphical interface got screwed up. And for lack of a better place to point a finger, i'd say to make sure you're using the "Linux VGA =0" command correctly.
Good luck, I hope the next guy is more help than what I probably was.