Create User with No Password

I have an XP machine that is part of a Domain.

The creation of users when logged into the domain appears to require that the user exists already on the domain. Okay, that's fine.

However, I want to add a User account for the LOCAL machine itself when NOT logged into the domain.

So at the logon screen, I select "Chuck (this machine)" (Chuck being the computer name) rather than selecting the Domain itself from the dropdown box. Seems these are my only two choices.

When I login as Administrator, I want to add a User called "User" with Standard access and no password, so that whoever gets this machine later can log in as User on the local machine itself.

It won't let me do it. It says that it does not meet the minimum password requirement. Isn't that requirement coming from the domain server itself? I'm not trying to create this for domain login, but local login.

What am I doing wrong?

Does the machine have to be put back to WORKSTATION mode in order to create users without passwords?