On WP 3.5 / BuddyPress 1.6.3 I am getting error message in plugin admin:
BuddyPress Groups are currently Disabled. Please enable groups in the BuddyPress - Component Setup Menu.
I am willing to throw a few $$ your way to get this fixed. At first I thought it was because site has only private groups, but I added public group and problem persists. You can write me at [ redacted ]and I will send donation