This got a lot of publicity but it doesn't really add all that much security. Supposing you choose 4 words from a dictionary of 200k (roughly the order of magnitude of the OED), you arrive at about 70 bits of entropy. Conversely, choosing a 10-character password from a 62 letter alphabet (a-zA-Z0-9) yields 59 bits of entropy- the difference is only a factor of 1024. Attackers aren't so dumb as to just try choosing random characters- they have very good priors on how common any particular character sequence is in the typical password and will mix and match entire words, with or without leetspeak substitutions, etc.
Of course no matter how rigorous your policy, it all goes out the window once your users type the same password into some other random site.