I have just setup a group policy in a OU for a few users. It is a password policy. I changed the settings in Computer Config, windows settings, security settings, account policies, Password Policy. I enforced a password history of 1 day. The max password age is set to 60 days. The min password age 0 days. Min password length is 6 characters. The password must meet complexity requirements. I did not store the password using reversible encryption.
I got my users to log off and back in and try to reset their passwords to 4 characters...and it worked. What am I doing wrong?