How do I disable password complexity in Windows Server 2008 with an active directory?

I have two problems (they are probably related)
I cant change security setting in IE7

I cant change password complexity settings in Windows Server 2008
I have tried in  Group Policy Management  and dont see anywhere to do it, and also tried in Local Group Policy Editor, but when I drill down to Password Policies\Password must meet complexity requirements. Its greyed out.
cwebbsr1961Asked:
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jesusrulesmeConnect With a Mentor Commented:
Start > Run > gpmc.msc

Right click "Default Domain Policy" > Edit

Expand: Computer Configuration > Policies > Windows Settings > Security Settings > Account Policies > Password Policy

You will see the password policies.

Double click on one of them and change to your need!

You may need to run gpupdate for a fast group policy update.
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