It seems as though I have successfully created a password policy based on groups in Server 2008, because it enforces a user who belongs to a certain group to meet password requirements.
When I follow the requirements, the password resets.
The problem is, when I fail to meet the requirements, I get an error stating:
Your password must be at least 0 characters, cannot repeat any 0 of your previous password and must be at least 0 days old.
We used to have no policy for password set, and they could have a blank password, but I removed that option from our default domain policy, yet I still get this error.