How do I configur for the doamin default so it won't require password when I create a user

You need to actually specify what the policy is ie:
To modify the Password Policy on the domain, Click START->Programs->Administrative Tools->Domain Security Policy
Expand Account Policies->Password Policy
The settings are:-

Enforce Password History: (Default 24) - Stops you using the same password each time by remembering previous passwords you have used.

Maximum Password Age: (Default 42) - Forces users to make up a new password at the specified interval - 0 = never expires (unless the account is marked "Password does not expire")

Minimum Password Age: (Default 0) - Passwords must be at least this age before they can be changed (stops user changing passwords too often)

Minimum Password Length (Default 8) - Passwords must have at least this number of characters

Password Must Meet Complexity Requirements: (Default Enabled) : in enabled Passwords must contain:-
At least one letter A-Z
At least one letter a-z
At least one number 0 - 9
At least one character that is neither a letter or a number

Store Passwords Using Reversible Encryption: (Default Disabled): May occasionally be required for interoperability with some non-Microsoft Systems.

It is NOT recommened that you allow zero length passwords - it allows you system to be easily compromised.

Thank you, but if I go with all the default then it still require me to enter password.  I'm using this on a vm machine for testing my application.  

Set the password lenght to 0
switch password complexity to Disabled

Oops, sorry, ignore the last comment.  It's now accepting no password.  How can I get the checkbox to be checked on Password never expired and not the default that user must change password.  Thank you.

Yeah, it's just a virtual machine for testing software.  It just gets crazy when I have to keep typing password.  Thank you.