While finding the relative XPath via Firebug : it creates like
.//*[@id=\'Passwd\']--------- what if we dont use dot at the start what it sign
The dot in XPath is called a "context item expression". If you put a dot at the beginning of the expression, it would make it context-specific. In other words, it would search the element with id="Passwd" in the context of the node on which you are calling the "find element by XPath" method.
The * in the .//*[@id='Passwd'] helps to match any element with id='Passwd'.