Thanks for responding.
I have mysql 4.1.22 which doesn't sound too handy but don't have suPHP.
I have removed the line from htaccess and tried adding some instructions for php4 but still no joy.

Everything else seems to be working just fine all bar the groups setup and recall process.
Seems like it is not creating the directory called "entry" as it should be.
If you hear of anyone having similar issues please let me know.
Cheers :-)