DLU does not work on Win Server 2008 R2

DLU policy doesn't work on a new Microsoft Windows Server 2008 R2 install.

ERROR (in ZCC):

An internal error occurred while enforcing the "Policy Name" policy.

ERROR (in zmd-messages.log):

 [DEBUG] [03/13/2012 11:45:24.984] [388] [ZenworksWindowsService] [39] [username] [dlu policy] [] [User Account creation failed for : username, retValue : 2245] [] []
 [DEBUG] [03/13/2012 11:45:24.984] [388] [ZenworksWindowsService] [39] [username] [dlu policy] [] [Exception in ApplyPolicies :
Exception Details: User creation fails
   at Novell.Zenworks.PolicyHandlers.DLUPolicy.DLUUserObject.CreateUserAccount(String username, String password)
   at Novell.Zenworks.PolicyHandlers.DLUPolicy.DLUUserObject.ApplyPolicies(MemoryData& memDataClass, _NWGINA_DLU_STATE_V1_& memoryMappedData, String sessionId)
   at Novell.Zenworks.PolicyHandlers.DLUPolicy.DLUPolicyHandler.ApplyPolicies(ApplyPolicyRequest applyPolicyRequest)] [] []
 [ERROR] [03/13/2012 11:45:24.984] [388] [ZenworksWindowsService] [39] [username] [dlu policy] [POLICYHANDLERS.DLUPolicy.ErrorInEnforcement] [An internal error occurred while enforcing the "Policy Name" policy.] [User creation fails] [5673da403ac97915a0e645cc7a3f2954]
 [DEBUG] [03/13/2012 11:45:24.984] [388] [ZenworksWindowsService] [39] [username] [dlu policy] [] [Execute policy operation completed for policy type - dlu policystatus :Failure] [] []

Change the default password restrictions (Start > Administrative Tools > Local Security Policy > Account Policies > Password Policies) on the Windows server to match the details of the password being used to create the DLU account

The error 2245 indicates a bad (too short or too long) password length, but it can be triggered by other password requirements that are not met.