OK, I know there are other newbies with this same issue...there have to be. I have searched the forums and can't seem to find the exact steps involved. Here is where I get stuck:
When I am at the "New Group" screen, and it asks me to "Add a Member," I click the trackball and it brings me to my contact list. Then, whether I click the trackball or the menu button on the contact, I seem unable to add a member.