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security



a couple days ago someone hacked into my dad's octane (he was stupid and
forgot to delete the 'demo' account on there).  anyways, they set up snffing
and got onto my linux box, now I have to completely reinstall linux (along
with irix) because the security has been compromised.  Anyways, my question
is: Is there any other way of securing a system besides deleting the
defaults, shadowing the passwords, and getting rid of anon ftp?  Also, is it
worth it to contact the fbi or the secret service (I think they're the ones
who handle computer crime now?)?

serge