text editor

First of all, I just wanted to say what a great app this is.

My first problem is with the text editor, I am unable to save any changes.  Do I have to give the internet user account write permissions on all directories on my server to enable this feature?

Secondly, is there any other way of setting the administrator password other than editting the file?  If this is the only means, there is nothing to prevent someone from simply viewing the source to get the password.

Yes, you should give write permission to IUSR_MACHINENAME account for the required folders.

If someone is able to view the source code then your server is not secure anyway. On a properly configured server, source code of ASP files can not be viewed by the client.