If the setting “password must meet complexity requirements” is greyed out
and you don’t have privileges on the domain to change the group policy,
you can change the setting for the local server only as follows:
Go to a command prompt and type
secedit /export /cfg c:\local.cfg
Now use notepad to edit c:\local.cfg
Look for the line “PasswordComplexity = 1” and change it to “PasswordComplexity = 0”
You can also edit “MinimumPasswordLength = 7” to a lesser value if you like.
Save the file.
Next, use the command prompt to type:
secedit /configure /db %windir%\security\local.sdb /cfg c:\local.cfg /areas SECURITYPOLICY
This will apply the new settings and refreshing the gpedit.msc should reflect the new settings