Strange one here. We have 2 domains that trust each other. Let's call them US and IL. US has the Group Policy that specifies the complex password requirements for the US domain.
We have an old server and a new one. The old server is win2k and the new one is win2k3. Both of these servers are member servers in the IL domain.
The win2k server allows us to create user accounts with passwords of 4 characters (which is outside the complex settings specified from the other trusted domain). The new server will not allow us to do this (and it needs to allow this for some old legacy DOS workstations).