Can't Type Password in Terminal

I'm changing a sudo command in OS X 10.5.6 on my new iMac and I'm running into a problem. Terminal asks for my password (I'm the Admin) and there's a gray rectangular box after the word "password". I'm unable to type anything. I tried typing my password and pressing return. Nothing happens but another prompt to enter my password.

I've repaired permissions after installing the latest updates. I also tried typing in my password before I installed my latest updates. Either way Terminal won't allow me to type in my password.

I wonder if Terminal is corrupt. ?

This is a brand new computer which arrived yesterday.

I purchased software, which requires a sudo command, and that's where I'm having the problem. The software is compatible with Leopard. I know, that's why I purchased a new computer. It was a good excuse for an upgrade.

Terminal won't echo anything while entering your password. Sounds like you've typoed it?

Now Error Messages

Actually I tried it several times and got no results.

After all those unsuccessful tries it worked and I got error messages. One showed up in TextEdit and the second in Terminal.


First error message:
-----
##
# Host Database
#
# localhost is used to configure the loopback interface
# when the system is booting. Do not change this entry.
##
127.0.0.1 localhost
255.255.255.255 broadcasthost
::1 localhost
fe80::1%lo0 localhost
-----

Second error message:
-----
009-04-17 20:36:29.427 TextEdit[304:c0b] *** CFMessagePort: bootstrap_register(): failed 1100 (0x44c) 'Permission denied', port = 0x4403, name = 'com.apple.TextEdit.ServiceProvider'
See /usr/include/servers/bootstrap_defs.h for the error codes.
-----

Looks like this denied me access.