HPDS subtree password policy not working

[feeble]

I am running HP directory server B.08.10.03 on an Itanium blade running 11.31 with the September 2011 QPK.  I have a password policy set for the subtree that allows user to change passwords, sets expirations time, and so on. When I  check the "Enable fine-grained password policy" on the directory server under "Configuration" -> "Data". The subtree policy only somewhat works. When a users passwword is reset, it does prompt for old and new password. But it spits out an error:

Password:
Old password:
New password:
Re-enter new password:
Failure - LDAP Processing Error

Rather generic. Access log is attached. At this point I have to disable the fine-grained password poilcy, as users cannot reset thier password. Any ideas?

[feeble · Accepted solution]

After some more digging, I found it. nsslapd-pwpolicy-local was set to off. When set to off, password policies for users and subtrees will not be processed.