This is old news by now, but still interesting IMHO. Jonathan Brossard has posted an article on BugTraq which gives a pretty good introduction to the inner workings of the BIOS (with lots of links to more detailed resources) as well as known vulnerabilities of the BIOS password mechanism.
The most interesting part is when he explains that the BIOS doesn't seem to erase its own keyboard buffer before it hands over control to the operating system. Also, current OSes (Linux, Windows, *BSD, etc.) don't seem to clear that buffer either.
This may not sound dangerous, but it actually allows anyone who can read the contents of your RAM, starting from address 0x041e, to view the keyboard buffer contents. And this buffer contains the BIOS password you type in when booting your machine (if you set/use a BIOS password, of course).
This one-liner (executed as root) should let you view your password as plain text:
dd if=/dev/mem bs=512 skip=2 count=1 | hexdump -C | head
(Only every second character belongs to the password, the rest are key scan codes, I think).
Yes, reading this part of the RAM usually requires root privileges in Unix-like OSes, but as the security problem is OS-independant other OSes (e.g. DOS, or older Windows versions) might be directly affected.
But even on more secure OSes this plain-text storage of the BIOS/boot loader passwords might be a problem. Combine this with some Firewire insecurities and attackers with physical access to your machine (e.g. your unattended laptop, while you are on the toilet) might be able to read your BIOS/LILO passwords even though you locked your machine. I haven't yet tried this, but I'm pretty sure it's possible. Please post the results here if you try this.
(via Stefan 'Sec' Zehl)
Update 2006-01-09: It seems that when you use software suspend (swsuspend2) the RAM area can/will also contain your root password! Thanks nelson for reporting.