Not possible in a W2k3 AD; in a W2k3 AD domain, you can only have *one* password policy, it *has* to be linked to the *domain* *root*, and it *has* to be applied to the DCs.
Fine-grained password policies are only possible in a W2k8 AD, or with 3rd-party tools like from
http://www.anixis.com/ or
http://www.specopssoft.com/Password policies applied to an OU will only influence *local* accounts on the computers in this OU.
This has been discussed in detail here:
http:Q_23244174.html#a21137177