I was in a similar situation after resurrecting my Dockstar with JTAG after a long spell and forgetting root password.
If you have serial access, from the top of my head,
1. modify usb_custom_params in uboot to 'init=/bin/bash'
2. mount -no remount,rw / at the root prompt.
3. passwd root to reset password.
4. Reset usb_custom_params after the reboot.
If you don't have serial access, you could setting up a chroot armel environment on your desktop PC, ie
http://mybookworld.wikidot.com/chrooting-to-arm-el-environment-on-linux-pc. Then you chroot to the usb drive and run passwd.