Does "CreateGroupFolder" do anything aside from creating folders in the file-system and setting correct permissions for them?
EDIT: Yep, nothing more, nothing less. As Chealion suggested, I ran it with the verbose flag (doh!) and got:
sudo CreateGroupFolder -v
Attempting to create group home directory for group 1026 at "/Groups/FooGroup".
Created directory "/Groups/FooGroup/Documents"
Created directory "/Groups/FooGroup/Library"
Created directory "/Groups/FooGroup/Public"
Created directory "/Groups/FooGroup/Public/Drop Box"
Set ownership to user 1000, group 1026: "/Groups/FooGroup" and all sub-directories and files.
Set permissions to rwxr-xr-x (755): "/Groups/FooGroup"
Set permissions to rwxrwxr-x (775): "/Groups/FooGroup/Public"
Set permissions to rwxr-x--- (750): "/Groups/FooGroup/Documents"
Set permissions to rwxr-x--- (750): "/Groups/FooGroup/Library"
Set permissions to rwx-w---- (730): "/Groups/FooGroup/Public/Drop Box"
Successfully created group home directory for group 1026 at "/Groups/FooGroup".