1.  No.  The documentation for the Group element clearly states, 
"Searches for an existing group in the specified domain.  Groups cannot 
be created by this element."

2.  Even if the directory already exists you can use CreateFolder to 
ensure it exists and set permissions.

Dhaval Patel wrote:
> Couple of questions:
>
> 1) Is it possible to create a new Windows group in WIX2.X?
>
> 2) We have some "application-level" users that need write permissions
> to the TempFolder for compiling Web Services' related temporary files
> - only issue is that I can't access the Permission element outside a
> <CreateFolder /> element. Is there a way to alter permissions on a
> pre-exisiting folder?
>
> Thanks in advance for any responses/ideas.
>
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