SQL 2005 password policy

We are supporting SQL 2005 databases in our HC control panels. The SQL server 2005 by default has the password policy enabled and hence whenever a database is created on the server via HC, the password policy gets enabled with the User should change password at next logon. Because of this, the users are asked to change the password whenever they logon for the first time to their database. I have read at many places that disabling the Local security policy of Windows server will also disable the password policy set in SQL 2005. Somehow, this solution does not work. Another option I have found is to set CHECK_POLICY = OFF in the SQL query for login creation. For example,

CREATE LOGIN foo WITH PASSWORD = 'bar',
       CHECK_POLICY = OFF

Now since, the database and logins are created using HC, I would recommend HC to have this option enabled whenever the SQL database is created from HC.

Can HC provide an update on this feature request?

HC, please reply.

We have tested it on our local machines and could not replicate the issue either with the cluster running under domain controller or with stand alone machines. Please check your security policies for SQL server.