when I try to type my password in the password prompt in the terminal I cant.. It shows a think black cursor that indicates type is being typed. When I try to edit the text file directly I cant because my account doesn't have enough user permissions.
If I'm understanding this correctly, you aren't seeing any cursor movement while typing the password?
That's normal. In the terminal window, the cursor will stay where it is and appear as if nothing is being input for security. It prevents someone watching your screen from seeing it. It doesn't show **** like a lot of things do, because someone seeing this (by scrolling up in the terminal when you walk away from it) would then at least know how many characters it is.
When you say "try to edit the file directly" I'm assuming you mean by right clicking it the icon. This won't work because you have to start the command line with "sudo" to get full admin rights. Accessing the editor through the Graphical User Interface doesn't allow it.
For background info, I recently learned: When you install Ubuntu, you create a user account (your account) but the installation creates the admin account which you can only access through using "sudo". You can't actually log in as a full admin.