It would really be beneficial to us in a school environment to be able to create a contacts list based on Group Membership.

Below is an email thread with our UK support.

Is it possible to create another public address book called "Students" that will automatically be populated with the members of the "Students" Group and then I could make this readable ONLY by the Teachers group, as I don't want the students accessing the email addresses of all the other students.

I can see the benefit of being able to export an MDaemon Group to a Contacts Folder (especially in your scenario where the Staff and Students need to be segregated in this way).

At the moment there is no method to do this though – you can define groups in Mailing Lists and as “users” with specific permissions on Public Folders but not your specific requirement.