Flutterby™! : Kid Hackers.. Felons or Exceptional Students?

HS Students 'Hack' iBooks because someone leaked the 'secure' password. School system declares it "Computer Trespass" - a 3rd degree felony.

So they gave kids these wonderful tools to learn with and about, set up some reasonable (but not insurmountable) technical obstacles, and when they figure out how to tinker under the hood you CHARGE THEM? WTF!?! - This is what school is about, give smart kids a good challenge with tangible rewards (downloading music, customizing, playing games..) and when they beat you at your own game, they should be rewarded. Slap them on the wrist, put better security on their iBooks, and give them an extra A+ grade in computer science. - And watch them bust the system again.. THESE will be the highly paid consultants, the engineers, the programmers, the problem solvers that this country needs to compete in the future after our shortsighted outsourcing of low end tech jobs to other countries creates a powerful competitor for world technology prowess.

Hint 1: generate a unique password for each system based on some bizarre math and crypto involving the serial # or the students name... and dare them to crack it.