BuddyPress.org

Make sure all folders are chmod 755. Can you confirm that the database fields are all there? bp_groups, bp_group_groupmeta, etc. ? What errors are you recieving in your apache error logs when you try and create a group? I see your error message in BP, but the apache one will be more insightful. As well, does apache have access to the folders that WPMU and BP are running in as it seems like it is having issues? Any additional information you can give would be helpful.

Trent