Bandit0:
This level demonstrates how to play the game, i.e. logging in via Secure Shell (or SSH). Type the first line into a Terminal on a Linux machine, and enter the password when prompted.
ssh bandit0@bandit.labs.overthewire.org -p 2220
Once logged in, you'll find the password for bandit1 in a file called "readme."
Bandit1:
This level demonstrates how to access a file with a "dashed filename." The file that contains the password for bandit2 is located in a file called "-", and can be read by placing a "<" or "./" before the dash symbol.
Here's a helpful link that talks about handling dashed filenames.
Remember if you aren't sure what a command does, or what the proper formatting is, the "man" page or ExplainShell can help.
Good luck!