Creating a new group: Right-click on Groups in the 'Local Users and Groups' tool, and select New Group. Specify a name and description, and click Add to add the members. Finally, click Create.

Each computer is a member of either a workgroup or a domain. Computers that are part of a domain usually have a network administrator who manages user accounts. These accounts are not located on individual computers, but in a central database called Active Directory. A workgroup is more of an ad-hoc network where each computer is managed separately. Only computers running Windows 7 Professional or greater have the option of joining a domain.

When a PC joins a domain, the user-management options change a bit. Parental controls are unavailable, the User Account tool replaces the 'User Accounts and Family Safety' tool, and you may create local users only through the 'Local Users and Groups' management tool.

Adding a domain user to a local group: In the Control Panel, open User Accounts, and click on Give other users access to this computer. From there, type in the person's user name and the domain (or click Browse to select it from Active Directory), click Next to add them to a group, and then click Finish.