Disable Complex Password Policy Server 2008 r2

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.

In Administrative Tools, select “Group Policy Management”, edit your default domain policy to your preferences and you’re set.  A quick step by step:

1)  Under Administrative Tools on your domain controller, run Group Policy Management

2)  Drill down to expand your domain and select it.  Then in the right pane, edit the Default Domain Policy by right-clicking on it and selecting “edit”

Click to zoom

3)  A new window has opened for the Group Policy Editor.  Expand “Computer Configuration” > “Policies” > “Windows Settings” > “Security Settings” > “Account Policies” > “Password Policies”.

Click to zoom

The settings have now been saved, but in order for them to become effective you must either reboot, wait for up to an hour, or manually force a group policy refresh by running “gpupdate /force” at a command prompt.

At this point you should be able to view and edit all of the relevant policies as shown above and edit them to match your preferences for your lab.