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To create a group in Active Directory, right-click on the object under which you want your group to be created and click on New > Group. Make sure to enter your group name in the wizard.
When you use PowerShell to create an Active Directory account, that account is disabled by default. PowerShell will not allow you to enable the account unless the account has been assigned a password.
When you create a group in your local Active Directory or Office 365, those groups will appear in the Windows Azure Management Portal -- assuming the environments are synchronized.
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