An old Windows XP laptop has been retired (actually the password had been lost and no one cared about it anymore). After recovering the password I deleted the old domain name and ESTABLISHED the computer on a home group. When I tried deleting the password I recieved a message about password policies not allowing passwords that do not meet a certain standard.

I thought no problem, I'll just change the policies... They are greyed out and locked on the only admin account.

So any ideas as to how to get round this? I did some googling but no solutions for XP:
http://help.wugnet.com/windows2/Administrator-allowed-change-local-security-settings-ftopict519979.html
http://www.pcreview.co.uk/forums/local-account-and-password-policy-options-greyed-out-admins-t2343585.html
http://www.petri.co.il/forums/showthread.php?t=33360

Help!Wipe and a clean install...
Which should be done automatically when dealing with 2nd hand PC's.Really? That's the only option availible to me?That's what I would do too.Did my HOMEWORK and found out that I have to re-install Windows:
http://blogs.msdn.com/b/muaddib/archive/2006/11/04/unlocking-a-local-security-policy-on-a-computer.aspx

If the computer still had access the to the original server it wouldn't be a huge problem. Hassle but not impossible.Oh ye of little faith.... I've just had an idea of how to get around the problem by poking a hole in it (I've not had the time to format the laptop yet). Is it possible to access the registry files externally, alter them (if necessary delete the problem entries) & allow the Windows REPAIR CD to fix them?

Special enfaces on possible not if it's easy.You could install a Linux OS on it. Doing all that stuff with the registry would certainly not be any easier than just reinstalling windows. There's other reasons why you'd want to reinstall Windows as well.

For one, doing so removes any dangerous software present on the computer. Any viruses, malware, etc. will be removed. Two, you don't have to worry about problems like these happening again, at least none that you can't fix. Three, by doing a clean install of windows, you avoid the terrible "windowsitis" that plagues older computers and causes them to run slowly. And four, you remove all the useless files on the laptop without having to clean up the mess left by the last user yourself.

Just do it the clean WAY, instead of getting all SLOPPY with the registry etc. Messing with the registry can bust your OS up anyway.