Can you change the type of Active Directory Password Complexity to be different than MS version

You can't set a password policy for an OU this way. The password policy for the entire domain is defined in the Default Domain Policy. It cannot be overridden at a per-OU level through Group Policy. What you want is a Fine Grained Password Policy, which is a bit more complicated to configure, but is the only way to accomplish what you want.

It appears that your default domain policy is enforcing minimum password complexity- you will probably need to edit Group Policy if you want to change this behaviour.

From Microsoft:

"Password must meet complexity requirements

This policy setting checks all new passwords to ensure that they meet basic requirements for strong passwords. By default, the value for this policy setting in Windows Server 2008 is configured to Disabled, but it is set to Enabled in a Windows Server 2008 domain for both environments described in this guide.

When this policy setting is enabled, users must create strong passwords to meet the following minimum requirements:

Passwords cannot contain the user's account name or parts of the user's full name that exceed two consecutive characters.

Passwords must be at least six characters in length.

Passwords must contain characters from three of the following four categories:

English uppercase characters (A through Z).

English lowercase characters (a through z).

Non-alphabetic characters (for example, !, $, #, %).

Each additional character in a password increases its complexity exponentially.

For instance, a seven-character, all lower-case alphabetic password would have 267 (approximately 8 x 109 or 8 billion) possible combinations.

At 1,000,000 attempts per second (a capability of many password-cracking utilities), it would only take 133 minutes to crack such a password.

A seven-character alphabetic password with case sensitivity has 527 combinations.

A seven-character case-sensitive alphanumeric password without punctuation has 627 combinations.

An eight-character password has 268 (or 2 x 1,011) possible combinations. Although this might seem to be a large number, at 1,000,000 attempts per second it would take only 59 hours to try all possible passwords.

Remember, these times will significantly increase for passwords that use ALT characters and other special keyboard characters such as "!" or "@".

Proper use of the password settings helps to prevent the success of a brute force attack."

Source: http://technet.microsoft.com/en-us/library/cc264456.aspx