My question still stands: *why* are you looking for the diags password?
You don't need it for jailbreaking purposes, and you don't need it for USBNet in main (which you should prefer over USBNet in diags for a whole host of reasons).
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As for kterm, you've answered your own question.
There are a couple older terminal applications, but they target older devices with a full physical keyboard.
TL;DR: I'm fairly sure you're screwed on the terminal front on a K4. Could be wrong though, as that's never been my area of interest.
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Still curious about your KindleTool issues, because I might be able to fix it, but not if I don't have any specific idea of what's happening exactly...
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