Porteus

Hi, I'm running the latest KDE4 desktop & have it configured to always boot up as root. However, I'm unable to establish a password.
I tried to do it thru Password & User Account - no luck. Then in Settings Centre, I get the blue "passwd root" console, but cannot type letters into
it. Please advise. Thanx

Try the good old Linux/Unix way.
(I assume you are able to start your session as root).

Open a terminal and type the following:
Then hit enter. It'll ask for a new password. Twice. You won't be able to see what you're typing, so be sure to do it correctly.

There you go.

I get the blue "passwd root" console, but cannot type letters into it. Please advise.

I believe the good old Linux/Unix way is being used here as shown in the console. The problem is that (as JosepZ points out) you don't see the letters being typed in. They are being typed in when you hit a key, but you don't actually see any characters (nor asterisks) being typed on the screen. Porteus Settings Centre just opens a console using passwd for you.