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Server 2008 - Disable "Password must meet complexity requirements"

  1. Click start and type gpedit.msc to open the Policy Editor
  2. Open Computer Configuration (left hand pane)
  3. Open Windows Settings (left hand pane)
  4. Open Security Settings (left hand pane)
  5. Open Account Policies (left hand pane)
  6. Open Password Policy (left hand pane)
  7. Doubleclick on the Password must meet complexity requirements
  8. Select Disabled
  9. Press OK 
  10. Close the Policy Editor
  11. Run gpupdate.exe
If the setting is enabled and greyed out, it means your Windows Server 2008 box is member of a domain and you need to address this issue in Group Policies or in the Local policy of your Domain Controllers. This is explained on the explanation tab of the policy.