Whatever you do don't discard it. I hate to see good hardware get thrown away.
A description of the prompt would be helpful. Is it just a screen of text (no window borders or anything like that.) or is it in a window. Is there any mention of Unix or BSD?
Also, look for a disk labeled Workbench. The guy might have several versions: 3.1 is the latest, although the system will probibly have 2.04 or 1.3. If you put that disk in the left most drive, it'll boot off it, and will come up to a working screen. However, it'll be working solely off the floppy, so there is still the problem of the password if you boot without.
Sorry, I can't be anymore helpful.
Good luck.
Clark