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dwhitten,
I have to agree, I would not want someone (anyone) registering and having the ability to pick their group and getting into the website with possible admin permission.
The *group* picking is fine, actually I have that available on my registration. But it is up to you once you receive their email to decide if they belong to that group or not. And depending on their group, you allow for those modules that group belongs to-to have permission to access them.
Example - I have a *group* selection for 12 State Agencies. Once the registra picks an agency and the activation email come to me, I verify they belong to that agency and once verified I go to (admin/modules/my profile/users) and under (Group Preference) select the group they belong too based on the modules for their agency.
Wish you the best on your "Grand Opening" for your website. I live in Horse Country myself (Ocala, Florida) and work with family & friends when we have horse shows.