Is it possible to assign privleges to an individual section? I am going to have several sections each for a different group of users. Every user needs to be able to read the articles posted in any of the sections (no problem since that's how it is already). However, only certain groups are to be allowed to post articles in their section. For example, say I have sections 1, 2, and 3. And groups A, B, and C. I need to make it so only group A can post in section 1, group B can post in section 2, and group C can post in section 3. But they can all view each others articles. Is there an out of the box way to impement this? If not, is there a module that can do this?

If you are talking of the default section module, provided with Xoops, no.
Instead use News 1.3 or Smartsection or wf section.