Pervasive.SQL v8.6 Security Setup Problems?

[Apollo6]

Server: Windows 2003
Pervasive: Version 8.6

What I want to do is setup Groups/Users having table level security in an existing database.

I have installed Pervasive.SQL v8.6 and have a database up and running. I am able to see all tables/data in the tables of the new database. I am able to enable security on the database by setting a Master user password. I then want to create a new group and add users to that group for table level security. I then right click on the Users node and select New Group. I get the screen to add a new group. I call the new group 'admin'. When I click 'OK' I receive the following error:

[Pervasive][ODBC Client Interface][LNA][Pervasive][ODBC Engine Interface][Data Record Manager]Invalid account name.

I then click 'CANCEL' and then the refresh button in PCC. Then the admin group shows up under the Users node. I right click on the 'admin' group and select properties and receive the following error:

"Object does not exist in the system."

Is there a previous step I am not doing to get the security working correctly? Any suggestions are appreciated.