When you connect to Lish, you're actually connecting to the console of your Linode, not the Linode directly. The second login is just like the login prompt you'd see if you sat down at the keyboard of a Linux box. Until you've logged in and created a regular user, you'll need to log in as root with the password you specified when deploying the distro.
To connect to your Linode directly, you would ssh as root to the IP address listed on the Network tab--again using the password you specified when deploying the distro.
If you're still having trouble, hop into the IRC channel (
http://www.linode.com/irc/index.cfm ) and we should be able to get you sorted out.
-James