IM groups are a great way to organize your Yahoo! contacts. They expand and minimize just like folders. To add a new group to your Messenger List:

Click the Contacts menu in Messenger, move your pointer over Organize Messenger List and click Create New Group.

Enter the name of your new group and click the OK button.

Note: To move contacts into a group, drag and drop their names into the group. The name might take several seconds to show up in the right place.