Creating Sharepoint Groups in Moss 2007

Group can be created at the site collection level. The following example will create group with Read only permission.

1)  On the Site Actions menu, point to Site Settings.
2)  On the Site Settings page, under Users and Permissions, click People and groups.
3)  On the People and Groups page, Click New > New Group.
4)  On Next page, Enter Group Name, Group Owner Name and select Read from the Permission Level.