How do you set up User Groups?

Hello,
I will be setting up several user accounts on my mac (running OS 10.4.6). Next, I would like to be able to share certain folders and files on my mac with only some of the users. I can see that in the ownership and permissions tab (under "get info") there is a tab for selecting "groups". How can I make use of this?
Where do you set up groups of users? I would like to assign some of my users into a single group so that when I set a file to be accessible to this group I may do so simply by selecting the file and assigning it to this group but I can't seem to find a place to set up the user accounts into groups.
Where do you assign these groups?
What are all the default groups that I see when I scroll down the menu of group choices?
PS What does it mean to assign a file's owner to "system".
Thank you.
PS I am running a regular client version of OSX Tiger (not OSX server). I mention this because I have a bad feeling that "groups" may only be an option if you are using OSX server but I would need this to be confirmed.
Now that I have written my question I think I have found another solution using Netinfo to create groups however the most important link is broken:
http://discussions.apple.com/thread.jspa?messageID=696926&#696926
Could anyone offer any suggestions on how to create groups? If this has to be complicated I would be willing to try Netinfo if I know where to find the procedure to follow. Thank you

Where do you set up groups of users?
Open the NetInfo Manager in the /Applications/Utilities/ folder, click the padlock, type in your password, and then duplicate an existing group, such as admin or certusers. Assign the newly-created group an unique name and numeric gid; the gid should be between 400 and 499 to minimize the possibility of it conflicting with something added in future. Click the triangle next to the users property and change the entries in that property to match those of the accounts you want to be members of it. All the existing groups will be shown here as well; they are necessary for various system-level functions, and shouldn't be deleted.
What does it mean to assign a file's owner to "system".
This changes the owner to the root account, which is basically Mac OS X itself, as opposed to someone logging into the machine.
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