Personally I tried this procedure on Neoware e140 wich run Neolinux 2.x but i think it’s the some with other models or os version:
1. Power on the thin client
2. Press ‘SHIFT’ during boot procedure
3. Now you can get LILO prompt, type: ‘vga simple’ (I have tried without success to run directly init=/bin/bash the system start but don’t load correctly the filesystem on flashdrive)
4. After kernel starting up procedure you can’t see nothing, then you can jump on terminal 2 pressing ‘ALT + F2’
5. Now on bash# prompt simply digit ‘passwd’ for setup new password
6. Reboot the system and use your new password