Well, the suggestions made here work, (almost):

1. they leave the '|' character
2. what if you want to replace, not just remove?

robasta suggests that you do the following

If you have access to the server then the simplest way would be to edit the .ascx file fhich relates to the skin which is in use. The skins are to be found in the directory C:\Inetpub\wwwroot\dotnetnuke\Portals\_default\Skins. navigate to this directory, and select the skin which you are using. You will find that there are a number of variations on the default skin in use. Select the relevant .ascx file. To remove the Terms of Use link do the following:

The above may also be acheived by using ftp. To use ftp you will need to:

1. Navigate to the relevant directory with your ftp program
2. Download the relevant file
3. Make the necessary changes
4. Put it back in place.

Note that if you are using this approach then it may be easy to overlook your changes in the future, finding that the Terms of Use reappear.

Darryl-
The easiest (and "most acceptable") method will be to alter the term "LOGIN" to "EMPLOYEE LOGIN" in the skin object's resource file.  You can edit with a resource file editor but a change this small can easily be done with Notepad.  The resource file can be found at the following location:
 
 (DNN root folder)\admin\Skins\App_LocalResources\Login.ascx.resx
 
The section you'll look for is:
 
  < data name="Login.Text" xml:space="preserve" >
    < value >Login< /value >
  < /data >
 
Change the text inside the "value" tags from "Login" to "Employee Login".
 
 
Tip:  Making the Resource File Unique to Your Portal
If you want to alter a resource file value only for a certain portal then make a copy of the resource file and rename the copy as follows:
 
If your portal is portal "0", create a copy of "Login.ascx.resx" and then rename the copy to "Login.ascx.Portal-0.resx".  Now portal "0" will use the copy while all other portals will use the default file.
 
Cheers!
-mamlin