Administrators of a computer can create a lockout policy by going to the run line and typing gpedit.msc or secpol.msc. These two commands are actually snapins that control the group policy or security policy of Microsoft Windows. While Group Policy will control more areas, the security policy editor allows for security on the computer.
Once inside of either snapin, look under Computer Configuration, Windows Settings, Security Settings, Account Policies and select Account Lockout. Once you find Account Lockout, select this option and look in the right pane. In the right pane, select the center option, Account Lockout Threshold. Double click on this option and move the retries to 3 (three). This will set both the Account Lockout Duration and the Reset Account Lockout Counter to 30 minutes by default. Once set, the user will be disabled and cannot login if the user tries three times. The Resets will occur after 30 minutes (the user can try again after without the administrator). It is important to enable auditing in the same policies in order to see 'who' has used the wrong passwords and if they tried after they were locked out.
Note: The three operating systems, Windows XP, Windows Vista and Windows 7 are primarily the same.