This is a complete list of steps I went through to configure my N770 in case I have to go through them again. Since I had previously messed the settings up. I am starting with a reflash to the latest version.
I couldn't get these instructions to boot from the MMC to work because the rsync/tar command at the end to clone the installation failed so I will be using my MMC as secondary storage only (e.g. for dictionaries, cached maps, media files etc).
$ sudo gainroot $ passwd user $ passwd root $ passwd -l root $ apt-get install ssh