How to Disable Password Complexity Requirements in Windows Server 2003 and 2008?

If you are using Windows Server 2003 or 2008, you might be aware of annoying password complexity requirements.
Whenever you want to create or update the password for your account or a new account, your password must meet the following minimum requirements:
1. Passwords cannot contain the user's account name or parts of the user's full name that exceed two consecutive characters.
2. Passwords must be at least six characters in length.
3. Passwords must contain characters from three of the following four categories:

• English uppercase characters (A through Z).
• English lowercase characters (a through z).
• Base 10 digits (0 through 9).
• Non-alphabetic characters (for example, !, $, #, %).

If you want to disable these password complexity requirements, simply follow these simple steps:
STEP 1: Type gpedit.msc in RUN or startmenu search box and press Enter. It'll open Group Policy Editor.
STEP 2: Now go to:

Computer Configuration -> Windows Settings -> Security Settings -> Account Policies -> Password Policy

STEP 3: In right-side pane, double-click on "Password must meet complexity requirements" option and set it to "Disabled".

You can also set "Maximum password age" option to 0 (zero) so that your password never expires.
STEP 4: Now run following command in Command Prompt to refresh the policy:

gpupdate /force

That's it. Restart your system and now you'll not have to fulfill annoying password complexity requirements.