As you may already know Server 2008 is designed be secure out of the box. This means there are a lot of features that are inconvenience to users. Server 2008 default password policy is one of them, It requires a super complex password. It is pretty easy to change the default policy.

1. Open Group Policy Management Console, Start > Run > gpedit.msc
2. Expand Computer Configuration > Windows Settings > Security Settings > Account Policies > Password Policy
3. From here you see change the password complexity requirement and other related settings.