In order to create a group in LiveJournal,
- If you have added no friends, Add your friends first.
- Choose Manage > Friends from the menu, and press "Edit Custom Friends Groups", or just follow this link: http://www.livejournal.com/friends/editgroups.bml
- Press the "New" button and enter the name of the group
- You can move the friends with the arrow buttons ">>" "<<"
- Press the "Save Changes" in the bottom to save the changes.