I have been able to gain access to privilege mode by turning of the router and:
Press Break on the terminal keyboard within 60 seconds of the power-up to put the router into ROMMON
rommon 2 > reset
Router(config)#enable secret <password>
The password recovery technique is in this document.
My problem is that after reboot the new password does not seem to work so I always have to always reboot to rommon2 to gain access. After normal reboot, when I try to get into exec mode the router asks for username. There are three listed in the show-config along with encrypted passwords, and none seem to work. It is not even clear to me which password I am reseting. Does anyone know if there is a way to change the username and password or a work-around to avoid this altogether?