By default Microsoft Windows Server 2008 enforces users in the Administrator usergroup to use strong passwords. Home users just want to create their own passwords without meeting any policies or leave it blank. This tutorial will explain how to disable these complexity requirements!
1. Click Run in the menu Start, then type gpedit.msc and click OK. In the Local Group Policy Editor expand Computer Configuration -> Windows Settings -> Security Settings -> Account Policies and click Password Policy.

2. In the right pane double click Password must meet complexity requirements and set it to Disabled. Click OK to save your change. You will now not longer be forced to use strong passwords; you can even use a blank one!

3. Optionally you can also choose to never let expire your passwords. To do this also open the Maximum password age policy and set set the value to 0. Click OK to save the policy change!

Thanks to Michael Sully and Mark for informing me about this tweaks!
Tags Server 2008 Workstation
June 9th, 2008 at 4:10
Admin, Maximum password age should be set to 0 so that password never expire.
Admin: Thanks, that’s useful information for the manual so added an extra step to this page! You are doing a very good job!
June 9th, 2008 at 17:05
I noticed that a quicker way to get to that screen was: Administrative Tools -> Local Security Policy -> Account Policies -> Password Policy. Cheers!
Admin: That’s right but now we are already at the right location so we change two settings at once!
July 19th, 2008 at 13:47
Hey Now,
This was a great post. It’s just what I wanted to do. I also love the series of Windows Server 2008 as a workstation.
Thx 4 the info,
Catto
August 28th, 2008 at 5:48
I tried this and those options are greyed out? It won’t let me disable or change password length etc. Help
Admin: Are you sure you haven’t joined a domain and that (parts of) the Group Policy Editor are disabled by the Domain Administrator? That is the only reason I can think of.
October 23rd, 2008 at 5:06
I also have the same problem. I tried to logon as Sys Admin but the GPE is still greyed out. How do I fix this?
Arris: I don’t know what the cause of this problem can be. If you ask your question at the Microsoft Technet Forums - Server 2008 section, I am sure you ‘ll get the solution!