[S4] PW Settings being ignored?

[Brian C. Huffman]

All,

Using S4_a13, I have the pwsettings such that password history length 
should be disabled, but I'm still getting history errors when trying to 
change a password on a client (and it's not letting me change the password):

[root at eti-sam4 var]#  net pwsettings show
Password informations for domain 'DC=xmen,DC=eti'

Password complexity: off
Password history length: 0
Minimum password length: 7
Minimum password age (days): 0
Maximum password age (days): 42

[testuser at polaris ~]$ passwd
Changing password for user testuser.
Current password:
New password:
Re-enter password:
Password does not meet requirements

[root at eti-sam4 var]# grep Constraint /usr/local/samba/var/samba.log
msg: 0000052D: Constraint violation - check_password_restrictions: the 
password was already used (in history)!

Any ideas what I'm doing wrong?

Thanks,
Brian