>>What is your SQL Server version exactly (select @@Version)?
>>
>>Also, did you try to script the action and do this from a script?
>
>version = 11.0.21000.60 (x64)
>
>I created the user turning off the pw validation. After that was good, I then checked the validation again. it was ok then, but while I found a work-around, this still seems like a huge bug that SQL would crash windows at all ever. ... just my $.02
>
>thank you for your response Naomi

Do you have SP1 installed for SQL Server 2012?

If the problem is reproducible, then you need to create a MS Connect item for that bug.