Familiar Linux 0.8.2 + IPAQ 5550 + Setting root password

Hello. I've recently installed Linux (GTK look) on my IPAQ.

When I boot up, and attempt to log in as root/rootme, it complains that
there is no shadow entry.

I read that after 0.7, they make you set the root password initially as
a security measure:

  boot> boot jffs2 boot/zImage console=ttySA0 init=/bin/sh sh

For some reason this isn't working, in particular the init=/bin/sh
argument.  My IPAQ simply hangs at Uncompressing Linux.

Also, my LCD isn't working. Any clues as to why this might be? the
bootloader seems to be "Disabling LCD controller" on bootup.'

I am eagerly awaiting your replies. Thanks in advance!