I have the same issue – I thought it was a bug that users couldn’t post and were redirected to the wrong place but following the directions above users are able to become group blog authors afterall.
I’ve thoroughly tested the plugin and it seems to be working **perfectly** with one big error only – my users can’t post / edit their posts to the blog. Only the administrator the group can access the group blog dashboard and post / edit posts.
Looking forward to the next update which fixes this.
Joa