Installing Microsoft CRM 3.0 Error Groups Do not exist

I am doing a fresh install of CRM 3.0.

During the check list of requirements before the set up will continue I am getting the following error:

One more more Microsoft CRM groups do not exist

I figured this installation would set up the groups automatically - guess I was wrong. So after reading the doc's CRM requires 4 groups (PriUserGroup, SQLAccessGroup, UserGroup, ReportingGroup).

So I opened the Active Directory and Added the four groups manually to the domain.local and tried the install again and got the same message.

Any ideas why? I guess I need to put the group in a specify dir under my domain.local (ie: in "MyBusiness" or "MyBusiness/SecurityGroups" etc) but I don't know where or if this is correct.

Thanks.