OU still shows the settings from Default Domain Policy

[guest]

I have applied Default Domain Controllers policy with Pasword and Account lock out settings. However when i run RSOP it shows the Source GPO is Default Domain Policy. I have blocked the policy on Domain Controllers O still the Password and Account Lockout policy shows the settings from Default Domain Policy
--------------------------------------------------------------------------------

[guest]

this is perfectly normal as, by default, password policies and lockout policies are configured at the domain level.

To apply multiple password policies, you have to use AD DS Fine Grained password policies. For that you should have 2008 DFL.