> In the /etc/passwd & group is a uid/gid of nobody.
> Why is nobody there and what does he do?

User "nobody" was created in the early days of NFS when you had to deal
with remote RPC that may not be coming from an authenticated user on the
NFS server, and thus do not have a valid uid, or for any other reason
you need to map a request to a known unprivileged user. That entry lets
you specify what the uid for that known unprivileged user should be. 

The original NFS server (in the SunOS 2.x days) would happily believe
any uid it was handed with very weak (if any) authentication, which
would allow anyone claiming uid 0 remotely to edit any file on your
system as root. This was clearly a Bad Thing. 

Somewhere around SunOS 3.x, the NFS server was changed so that unless
you specified a particular option (nosquash), any RPC claiming uid 0
from a remote or unauthenticated source is mapped to user 'nobody',
which has no privileges, can't log in, and owns nothing in the default
system setup -- so theoretically it closes a major security hole. It
exists in Linux to allow the NFS code to avoid major changes. 

Leave it alone. You'll want it in case someone accidentally installs NFS
where it doesn't belong. 

> Also in his (and others) shadow file he has * as his encrypted
password,
> does this have special value?
> nobody:*:13725:0:99999:7:::

Indicates that this userid can't log on. The crypto libraries are
guaranteed never to produce a encrypted string equal to '*' or '!', so
any user with those strings as their encrypted password string cannot
possibly authenticate successfully, so they cannot log on. 

If NIS or NIS+ is active, a '*' in the password position in the userent
indicates that the login program should consult NIS for password string
information. If NIS is not working, then the * entry prevents any user
not explicitly listed in /etc/passwd from logging in until you get NIS
working again...8-)

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