You may encounter one or more of the following symptoms when you create a new user account by using Group Policy Preferences in the Group Policy Management Editor window on a computer that is running Windows Vista or Windows Server 2008:

• The user account password is set to NULL when you update some of its properties and then press the Apply button.
• The user account password is set to NULL when you set the length of the user account password to a range of 16-23 characters.
• The whole setting file (groups.xml) file is deleted when you create a user account and then press the Apply button. Therefore, all user settings are lost.

When you encounter one or more of these issues, the user cannot log on to the computer by using the new user account. Additionally, the user account password is not set as expected, and the user account password does not comply with a strong password policy. Therefore, there is a security issue.

This problem occurs because the Group Policy Management Editor Microsoft Management Console (MMC) snap-in window does not manage passwords well. When the Apply button is clicked, the Group Policy Management Editor MMC snap-in window incorrectly clears the password of the user account or all the user settings.

Hotfix information

A supported hotfix is available from Microsoft. However, this hotfix is intended to correct only the problem that is described in this article. Apply this hotfix only to systems that are experiencing the problem described in this article. This hotfix might receive additional testing. Therefore, if you are not severely affected by this problem, we recommend that you wait for the next software update that contains this hotfix.

If the hotfix is available for download, there is a "Hotfix download available" section at the top of this Knowledge Base article. If this section does not appear, contact Microsoft Customer Service and Support to obtain the hotfix.

Note If additional issues occur or if any troubleshooting is required, you might have to create a separate service request. The usual support costs will apply to additional support questions and issues that do not qualify for this specific hotfix. For a complete list of Microsoft Customer Service and Support telephone numbers or to create a separate service request, visit the following Microsoft Web site: Note The "Hotfix download available" form displays the languages for which the hotfix is available. If you do not see your language, it is because a hotfix is not available for that language.

Important Windows Vista and Windows Server 2008 hotfixes are included in the same packages. However, only one of these products may be listed on the “Hotfix Request” page. To request the hotfix package that applies to both Windows Vista and Windows Server 2008, just select the product that is listed on the page.

Prerequisites

To apply this hotfix, your computer must be running one of the following operating systems:

• Windows Server 2008
• Windows Server 2008 Service Pack 2 (SP2)
• Windows Vista Service Pack 1 (SP1)
• Windows Vista Service Pack 2 (SP2)

Restart requirement

You do not have to restart the computer after you apply this hotfix.

Hotfix replacement information

This hotfix does not replace any other previously released hotfixes.

File information

The English version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.

The MANIFEST files (.manifest) and the MUM files (.mum) that are installed for each environment are listed separately . MUM and MANIFEST files, and the associated security catalog (.cat) files, are critical to maintaining the state of the updated component. The security catalog files (attributes not listed) are signed with a Microsoft digital signature.

For all supported x86-based versions of Windows Server 2008 and of Windows Vista SP1

For all supported x86-based versions of Windows Server 2008 SP2 and of Windows Vista SP2

For all supported Itanium-based versions of Windows Server 2008

For all supported Itanium-based versions of Windows Server 2008 SP2

For all supported x64-based versions of Windows Server 2008 and of Windows Vista SP1

For all supported x64-based versions of Windows Server 2008 SP2 and of Windows Vista SP2

To work around this problem, use one of the following methods:

• Avoid passwords that are 16-23 characters long when you use Group Policy Preferences to create a user account.
• Click the OK button instead of the Apply button after you edit the user account settings.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

For more information, click the following article number to view the article in the Microsoft Knowledge Base:

Additional file information for Windows Server 2008 and for Windows Vista

Additional files for all supported x86-based versions of Windows Server 2008 and of Windows Vista

Additional files for all supported x64-based versions of Windows Server 2008 and of Windows Vista

Additional files for all supported Itanium-based versions of Windows Server 2008