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My issue is in regards with turning on Check Policy for SQL Server Logins when SQL Server 2005 is running on Windows 2003. The Check Policy is ignored and simple passwords can be used.

The issue is in regards with turning on Check Policy for SQL Server Logins when SQL Server 2005 is running on Windows 2003.  The Check Policy is ignored and simple passwords or even blank passwords are allowed.  Is this a Windows 2003 bug? What does it take to get it working?
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As it turns out Group policies were not turned on at the Domain Controller, thus nothing was being passed down to the Server. So, The answer given would be correct at the Server level.  Thanks.