Domain Services for Windows (DSfW) supports all Group Policy settings that apply to Windows servers and workstations. Group Policy settings that apply to domain controllers (such as Password policies) are not supported in the OES 11 SP3 environment. The Password policies for DSfW users are controlled by eDirectory and the Universal Password settings.
For more information see, Managing Group Policy Settings
in the OES 11 SP3: Domain Services for Windows Administration Guide.