It has been my observation that only the AOLserver user's primary group is in effect. For example, if you run AOLserver as nsadmin and that user's primary group is nsadmin, then AOLserver will only be able to read and write files which are available to that group. Adding additional groups for the nsadmin user will not help. I don't know why this is so, but I've run into it a few times now. I'm not sure whether to call it a bug or a security feature! :)
