In this tutorial I will demonstrate how to set up passwords and make them work, and secure them with MD5 hash.
This enables the first password you come across when you first get on the switch.
line console 0
password cisco
login
exit
This line enables a password for Telnet and SSH sessions via another device trying to access your switch remotely.
line vty 0 4
password class
login
exit
This enables the second password you come across to get into administrative mode.
enable secret class
This enables MD5 hash security on all future and current passwords on your switch. MD5 is extremely unsecure however.
service password-encryption