If your system was cracked by username and a simple (no password) attempt, it seems like the pan-usb would auth and (especially, root name would not be a guess (I see no way to stop a cracker from just using root).
It doesn't say anything about the tcp packet being encoded at all or whatever protocol it is using (and how does another machine fine the local usb device?)
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I would not trust it without knowing more about the pad gen and transmission method.
However it is very convenient and if it were secure could eliminate a ldap and/or a w2k3 server?