LAN Manager passwords are concatenated to 14 bytes and split in half. The two halves are hashed individually. If the password is 7 characters or less, than the second half of the hash is always:

A.
0xAAD3B435B51404EE

B.
0xAAD3B435B51404AA

C.
0xAAD3B435B51404BB

D.
0xAAD3B435B51404CC

Explanation:
A problem with LM stems from the total lack of salting or cipher block chaining in the

hashing process. To hash a password the first 7 bytes of it are transformed into an 8 byte odd parity DES key. This key is used to encrypt the 8 byte string "KGS!@". Same thing happens with the second part of the password. This lack of salting creates two interesting consequences. Obviously this means the password is always stored in the same way, and just begs for a typical lookup table attack. The other consequence is that it is easy to tell if a password is bigger than 7 bytes in size. If not, the last 7 bytes will all be null and will result in a constant DES hash of 0xAAD3B435B51404EE.