The database password thing is simply for security. You can bypass it by opening install > configwrite.php and find:
PHP Code:
if($dbuser == "" or $dbpass == "" or $dbname == "" or $domain == "" or $prefix == ""){
die("Something required was left blank. Please go back and try again.");
}
Replace With:
PHP Code:
if($dbuser == "" or $dbname == "" or $domain == "" or $prefix == ""){
die("Something required was left blank. Please go back and try again.");
}
That will allow you to install without a database password. :)