Turn password complexity off in Windows 2008 Server or change other grayed out security options.
(1) run gpmc.msc (Group Policy Management)
(2) Expand your Domain
(3) Go to <Group Policy Objects> and select <Default Domain Policy>
(4) Expand: <Computer Configurations> <Policies> <Windows Settings>
<Security Settings> <Account Policies> <Password Policy>
4.1) rigth click.. and select <Edit> (its impossible to make change in
the GPM.. only in the Editor)
(4.2) again.. Expand: <Computer Configurations> <Policies> <Windows
Settings> <Security Settings> <Account Policies> <Password Policy>
(4.3) 2 clicks in the <Password must meet complexity requirements>
(5.1) close the Editor
(5.2) and than refresh the GPM
Wait until the policy updates a bit or
(6) run: gpupdate /Force
This is the only way to disable Password Complexity in Server 2008. The local Security Policy can not be used for changing Password Complexity in Server 2008.