Trying to leave first town and the game wants a typed in password?? WTF is that??

It's the copy protection; back in the day, to combat piracy, some games made it so that you have to type in a word from the manual (which wasn't as easy to copy as the game) in order to play it.

Anyway, I believe there is a pdf file of copy protection answers in the Might and Magic 3 folder. (Ironically, this version of MM3 has the copy protection cracked, so you don't actually need it for MM3, but do for MM4 and MM5.)

It's worth noting that it is actually possible to beat MM5 without actually entering the copy protection password, but I wouldn't recommend trying until you are familiar with the game. (MM4 can't be beaten without something considered a cheat because you can't enter the place to get a certain sword without a copy protection check.)

MM 3 copy protection will work for MM4-5?? I'll try it.. Thanx for the answer..

The file for down load is mm_wox_reference_card and it has the copy protection words for M&M4-5..
Thanx again..

It's possible to remove the copy protection on some versions of the Xeen games too:
http://patchery.net/patchery/patch.html?id=1000013