I remember having similar trouble.
I always blamed the faulty windows API and gave it no more thought when some of the functionality didn't work.

hmm, guess this should be finally revisited.

anyway, you can always do it silently without showing the group at all:
Code:

$startMenu_programs = readvalue("HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders","programs")
MD $starMenu_programs + "\testGroup"
copy "%netlogon%\links\testGroup\notepad.lnk" $starMenu_programs+"\testgroup"



tried to made a really short example, so this one needs the link (shortcut) file to be already created somewhere.

hmm...
actually.
looking at some older code:
http://www.kixtart.org/UDF/UDF_lister.php?what=post&code=82353

you don't need to show the programgroup.
thus the code can be:
Code:

$startMenu_programs = readvalue("HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders","programs")
MD $starMenu_programs + "\testGroup"
$ReturnCode=ADDPROGRAMITEM('"C:\Windows\system32\notepad.exe"', "Notepad", "", 0, "", 0, 0)
MOVE $starMenu_programs+"\notepad.lnk" $starMenu_programs+"\testgroup\notepad.lnk"

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