password policy disabled but still cannot create user

[slowtrain]

Although I have disabled password policy, I still cannot create user and always get a warning that the password does not meet policy requirements. The same happens even when I type in really strong password.

I have Windows 7 Professional x64 and my computer is not in any domain.

 

[Dwarf]

These are my settings for Account Policies in secpol.msc. Do they match yours?

 

[slowtrain]

Exact match.