I need a site that has one common area with news and forums for everyone who is registered. But the users should be divided up into specific groups, and each group should be able to access forums and news only for them. Those areas should be edited by group administrators.

This requires a user-group permission scheme that allows some people to view certain areas and not others, but is not strictly heirarchical. It also requires the ability to instantiate multiple instances of a news or forum module.

Please answer if you have direct experience with this - I cannot tell from the docs, and I do not want an answer from someone who has not tried something similar.

ps - Mambo cannot do it, Postnuke can, Drupal may be able to - but all of the Java-based CMSs can - I assume because they are OO.

News 1.2.1 allows for access to topics based on usergroups
Newbb 2 allows for access (and many more granular permissions) based on usergroups

Both are available for download on http://dev.xoops.org (Check the "Top Downloaded" block in the bottom right) - however, Newbb is still in a beta version, but approaching final release.

I appreciate your response - can you or someone tell me if the application of these permissions also applies to forums? Is it on a module-by-module basis that more advanced permissions are applicable?

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Newbb 2 is the forum module, the one being used here in fact (though this is a beta 1 version). And as Mith said, it allows for access (and many more granular permissions) based on usergroups.

The same applies to all modules. Access to the module is set per usergroup. Further advanced permissions are as you suggested on a module-by-module basis.