SBS 2011 Exchange Serve trouble adding new users on a New SBS 2011 Server

Trying to add new Users to a Brand New SBS 2011 Server, in exchange I get the following error message below it will not let me add a User, any thoughts on why ?




Summary: 1 item(s). 0 succeeded, 1 failed.
Elapsed time: 00:00:00


xxxxxx
Failed

Error:
Active Directory operation failed on I-PHONESERVER.iphone.local. The password is invalid. Additional information: Unable to update the password. The value provided for the new password does not meet the length, complexity, or history requirements of the domain.
Active directory response: 0000052D: SvcErr: DSID-031A120C, problem 5003 (WILL_NOT_PERFORM), data 0


The server cannot handle directory requests.
Click here for help... http://technet.microsoft.com/en-US/library/ms.exch.err.default(EXCHG.141).aspx?v=14.1.218.11&t=exchgf1&e=ms.exch.err.ExA04FE5

Exchange Management Shell command attempted:
New-Mailbox -Name 'John Smith' -Alias 'johnsmith' -OrganizationalUnit 'iphone.local/MyBusiness/Users/SBSUsers' -UserPrincipalName 'johnsmith@iphone.local' -SamAccountName 'johnsmith' -FirstName 'John' -Initials '' -LastName 'Smith' -Password 'System.Security.SecureString' -ResetPasswordOnNextLogon $false

Elapsed Time: 00:00:00