Password Policies can only be Applied to a Domain.

Password policies can only be applied to domains and not to individual OUs in Server 2000/2003.  The article below explains why (see the section entitled “Establishing Local Security Accounts Manager (SAM) Password Policies”): http://www.windowsecurity.com/articles/Longhorn-Poised-Provide-Multiple-Domain-Passwords.html  

Some good news is that Longhorn will change this limitation.

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