Lugnut was probably testing a script, or Knaz was revising the build (again). When the password is on the server, it basically implies that the server is "shut-down." But since it's a dedicated Lugnut is paying for, can't really shut it down, so he just puts a password on it, and when Knaz is setting ready, he'll set things up then remove the password. Nothing special really goes on when there's a password.