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I use the "DOMAIN SECURITY POLICY" snap in to define the password policy and a few other little things.

I use the default domain policy (the one that is applied to the root domain) to set my basic security configurations.  This is like a template for all of my OUs

I then use just GPOs for other OUs that need additional rights. I block inheritance on these OUs so they do not inherit anything from the default domain policy.  However, the password policy defined in the Domain Security Level cannot be blocked.

does everything sound like I'm doing this correct?

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Block inheritance does not work to block password policy.
Password policy is a domain wide setting...when it is enabled, it will apply to the entire can't block it to certain OUs.

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Hi dissolved,

Yes it does. Account policies in windows 2000 server are applied at the domain level, and you can't block their application when set, nor can you apply separate account policies to OU's. You CAN in 2003 server, not 2000 server though.
Useful PAQ here
Group Policy in Windows 2000
Overview: Defining Group Policy Objects
How to configure account policies in Active Directory

Deb :))
dissolvedAuthor Commented:
Question for you. WHere is a better place to define password policy and auditing? The "domain security policy" (stand alone snap in)  or "default domain policy" (in users and computers snap in)

So what gets defined at the DOMAIN SECURITY LEVEL?
Just password policies and auditing?

What gets defined at the DEFAULT DOMAIN POLICY  ?
Basic settings for your OUs?

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Windows 2000

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