Windows Server 2003 and complex passwords not being detected

we've implemented new password policy @ our institution:

policy	setting
enforce password history	12 passwords remembered
maximum password age	180 days
minimum password age	0 days
minimum password length	8 characters
password must meet complexity requirements	enabled
store passwords using reversible encryption	disabled

we've run funny problem when comes password complexity.

this password doesn't work: deadpool12

this password work: 00deadpool12

does windows server 2003 @ first 8 characters determine if meets complexity standards?

we did. that's example came from:

this password doesn't work: deadpool12

this password work: 00deadpool12

i guess moot point since can't see password history verify anything.

i'm going chalk password history , bad string matching.

Windows Server  >  Group Policy