When you put PASSFILT in the REgistry on your PDC and reboot it, then the next password change will be applied against this filter. Any existing passwords will NOT be subject to its conditions. Only new password changes that take place once that PDCis back up will be compaired to the filter parameters.
So, put PASSFILT on, reboot, then make sure your users accounts all have passwords that will expire at some point. You can change the Maximum Password Age account setting to a couple of days toforce the passwords to need to be reset.
When we rolled out PASSFILT at my company, we already were running Max Password Age at 30 days. I put PASSFILT on and let the user passwords expire as they normally did.
This meant I got a steady stream ofcomplaints on the new password parameters for a whole month! That was the only bad thing ;-)
Check out Technet article Q161990 on PASSFILT. Sure, it will be an annoyance for your users, but it looks great if you get audited for security, and it is a good thing to have in place.
http://support.microsoft.com/default.aspx?scid=kb;EN-US;q161990
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hope this helps