I didn't really expect them to write code on the spot (hate that in interviews), but just to describe a possible solution; there were no wrong answers. Seeing how people came up with a quick hack for 10 and then being able to evolve their thinking for thousands was the point of the question and it could be enlightening to see.
I had a lot of people come up with things that I never even thought of, such as SSH'ing in to all 10 machines and then using a terminal feature to type into all of the windows at once.