Thank you! I got it working.
for anyone else:
I edited the fields for 'Content (repository item)'
Add the taxonomy term you create for your group here:
admin/structure/types/manage/islandora_object/fields/node.islandora_object.field_access_terms
for the field 'Access Control' (field_access_control) I saw a checkbox for my Taxonomy term under 'Refrence Type'
I edited a node of content, and 'Access Control' under the 'System' header now had a checkbox. checked it, saved and it was added to my group.
I'll probably play around with this a bit. We're going to have at least 19 different groups in our repo, so I was wondering if there might be a way to use a Drop-down instead of a checkbox. But for now this is perfect.
Thanks Again!!!