Just a suggestion, which may or may not be redundant:

If I'm trying to create a password less than 8 characters long, the proggie should ask display something like "Password only 'x' characters long. I would advise a minimum of 8 characters for the above gradations to apply" or something along those lines.

Because currently, I skipped reading the "gradations apply" sentence the first few times I tried the program.

Just an idea. Cheers!