Ok, I found that someone on the forum had the same problem as me http://modmyi.com/forums/showthread....assword+change.
Good to know that restore worked. But I'm thinking, because the crashing is caused by OpenSSH - would uninstalling openssh remotely (deleting the files on iphone) fix the problem? Or deleting the /etc/master.pwd file? I just dont want to bother with the effort of restoring if it can be remedied by a simple deletion.