How to set Minimum Password Length for user accounts in Windows Vista?
This is another security enhancement that allows user to create a password for the account of at least a minimum length set by the administrator.
You can set Minimum Password Length for a user account in the following manner:
1) Open Local Security Policy Editor and expand the policy Account Policies \ Password Policy in the left pane
Figure 1
2) Now double click the Minimum password length option in the right pane
3) You can now set the minimum password length between 0 to 14 characters by typing the value in the textbox
Figure 2
Note: The value zero (0) means no password is required
Figure 3
4) Click OK button


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