The Cuckoo’s Egg is a great read. For another great hacking story from the same era, see "An Evening with Berferd: In Which a Cracker is Lured, Endured, and Studied": http://www.cheswick.com/ches/papers/berferd.pdf
From the abstract: "On 7 January 1991 a cracker, believing he had discovered the famous sendmail DEBUG hole in our Internet gatewaymachine, attempted to obtain a copy of our passwordfile. I sent him one. For several months we led this cracker on a merry chase in order to trace his location and learn his techniques."