Rating:
First, connect via netcat.
We got a shell, let's look around:
/ $ ls
=> We see the flag file.
/ $ cat flag
=> Not enough permissions.
Are there many other users?
/ $ cat /etc/passwd
=> Only root seems to be available. Let's try switching to it:
/ $ su
=>
/ #
=> See the #? This worked! We got root!
/ # cat flag
=> Here's the flag! The challenge is solved! :)