Hi Mike:

The Provisioning API currently allows you to create Groups and add or remove 
group members, so you should have no problem using it for this purpose.

The issues earlier on this thread refer to the fact that there are limited 
Group access control options in the Provisioning API. For example, currently 
the API only allows developers to designate one of four email subscription 
options for groups... See this page for current available email permission 
options when creating groups with the Provisioning API:
http://code.google.com/googleapps/domain/gdata_provisioning_api_v2.0_developers_protocol.html#Sample_GroupEntry_Response

Thanks,
Michael

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