BTW, this might answer your question imhotepmp:
from a windows help search on "policy" (of all places!):
Using security groups to filter Group Policy
Because Group Policy can apply settings from more than one Group Policy object to a site, domain, or organizational unit, you can add Group Policy objects that are associated with other directory objects. You can also prioritize how these Group Policy objects affect the directory object to which they are applied.
In Windows 2000, computers can belong to security groups. Administrators can use security groups to further refine which computers and users a Group Policy object influences. For any Group Policy object, administrators can filter the Group Policy object's effect on computers that are members of specified security groups. This filtering occurs using the standard access control list (ACL) editor. To use the ACL editor, click a Group Policy object's property sheet, and then click Security. The ACL editor can also be used by administrators to delegate who can modify the Group Policy object.