Sorry guys I assumed if it didn't say reset it wouldn't work and that I would have to know the existing password to change it.
Yes, the wording probably should be altered to;
4) Set local administrator password
Using "Change" does imply using the normal Unix method of requesting existing password first.
@tobiasrankin - I suggest you "Report a Bug", (top of every forum page), and request the wording be altered. After you have the Jira bug, post a link to the Jira bug here. Those who think it's a good idea to alter the wording can vote to have it reviewed.