Niel: After typing the command I press enter (return) and it takes me to the Password: prompt. Terminal will not let me go anywhere, since it won't allow me to enter my password. If I press return after the Password: prompt, I am taken right back to the Password: prompt.
Read Niel's reply again.
When you are at the password prompt, type your password, then press return.
While you are typing your password you will NOT see any characters, or asterisks, or bullets or anything appear on the screen. The cursor will NOT move while you are typing your password. However, Terminal IS collecting the password that you're typing and will use it for authentication once you press return.
That's simply the way it works.
Thanks all. I did as you suggested, i.e: typing my password even though it did not appear to be entering. Lo and behold, it worked just as you said it would. Thanks very much for helping a Terminal newbie.