Block Inheritence of Password Policy

We have a new password policy we are now enforcing via group policy in active directory.  But I would like to stop this password policy from hitting a couple OUs.  I have set those OUs to 'block inheritence but I still can not create the accounts in them because of the password complexity.  Is that by design or am I doing something wrong?
serjoshAsked:
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mabthalCommented:
This is by design
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snusgubbenCommented:
The password policy in 2000/2003 domains is set at domain level, so you can't block it in your child OUs.

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Mike KlineCommented:
The password policy applies at the domain level and you can't block it or have separate password policies
If you want a different policy in a 2000 or 2003 domain you can use 3rd party tools, for example:
http://www.specopssoft.com/products/specopspasswordpolicy/
When you get to a windows 2008 domain functional level you can apply different policies to users and group (known as fine grained passwords)
So tell your boss that you can't change the Microsoft code :)
Thanks
Mike
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cantorisCommented:
All accounts in an Active Directory domain take their password policy from a Group Policy Object at the domain level, irrespective of what you have configured in policy at the OU level.  Password policy applied elsewhere will only apply to *local* accounts on domain PCs.
The only exception to this is AD in Server 2008 that can use Fine-Grained Password Policies - which are implemented in a different way.
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AmericomCommented:
Unless you create another domain for win2k/2k3, otherwise, one password policy per domain. But having another domain just for password may not be justified financially. So, you may want to leave as is, upgrade to win2k8 or 3rd party tool as Mike suggested.
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