If you use your favorite text editor to open the file /etc/inittab you will note the following:
# This is only for VL Dynamite
# 7/8 = autologin boot ! : HACKING

#
Run level 7 is for text autologin and run level 8 is for gui login.
If you use that text editor to open /etc/rc.d/rc.A you will note the following:
#!/bin/sh
.A # rc Boot the system into GUI mode using AUTOMATIC LOGIN
# This is intended to run as init level 7/8
#
# This automatic login is a big big hacking.
# I mean, is is not standard at all.
# It uses run level 7/8, which is documented (RTFM init),
# but hardly found on any UNIX system.
# As far as I know, no one has ever done this way before.
# Usually you have to use KDM or GDM to achieve autologin.
# Now you just need to boot into run level 8,
# and get the free access to that nice GUI.
# Run level 7 is reserved for TUI mode.
# Enjoy but once again ... DO NOT think this as an official UNIX way !!!
#
# (c) 2004, Eko M. Budi
# (c) 2004, Vector Linux
# License: GNU GPL
## The settings, changed by vbootset
## who will be our user
USER_ID='1000'
## the default level after autologin session is finished
NEXT_LEVEL='4'
Apparently this is an experiment (by Kocil?) that allows the use of the inittab and rc.A files to permit an autologin bypassing the display manager, ie kdm. It is said to work on the new version of VL Dynamite.
I decided to check out the above users suggestion to see if it would work on VL 5.8. It does not work on VL 5.8. Interesting idea though.