John, 

I can confirm their is no "ad-hoc" distribution mechanism in the Android 
Market.  It is not possible to release a Beta app to just a distinct group 
of people.  This is a feature commonly requested - check the bug reports 
for Android Market.

You could accomplish this by setting up your own distribution (a website, 
or even emailing the APK to your beta testers) - or creating a new Market 
listing that you don't publicize, that you can tell your testers about 
(give it a weird name, and bad promo graphics, and there will be little 
chance of people downloading it).

-MIke

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