– To create a group, assuming you’re using bp-default theme and that you’ve allowed Groups in BuddyPress > General Settings, go to http://yoursite.com/groups and click on the “Create a Group” link beside the Groups Directory header.
– The bp-default theme has a log-in form in the sidebar. Then assuming you allowed registration, it will have a link to the default BP registration page.
– Before installing any plugin, WP or BP, check plugin compatibility with your current BP/WP versions. If plugin notes compatibility up to WordPress 3.0 and BP 1.2.6, then you shouldn’t be installing that plugin in a WP 3.1.3/BP 1.2.8 installation.
Please check out the BuddyPress Codex for more information
https://codex.buddypress.org/home/
https://codex.buddypress.org/getting-started/before-installing/
https://codex.buddypress.org/getting-started/configure-buddypress-components/
I would say something else, but fellow Mercime has covered just about everything. 
I ended up changing my theme before I read this and that was the issue. Now, I need to know how to delete a group. Thanks for your help.
Do you also know how I can redirect log in from the WordPress sign in page to go directly to my site?
If you check through all the options for groups as admin you will find settings to manage all aspects of a group.
Not sure I understand the second question, you should be able to login from the sidebar which will return you to the front or home page.
If you are still using a custom theme, I would advise you work with the BP default theme first to get used to the system working fully as custom themes can cause issues with missing functionality.
