Click Start.
Click Internet Explorer.
In the address bar type
www.yahoo.com. 
Log in to the e-mail. Type in your username and password.
In the top tabs click addresses.
Now you will see a list of all the people in your contacts list.
Click on the users you want to place in a category.
I forgot to check their names so let me try again.
Click Add to category.
After you click that an option will appear at the bottom to
add "new category." 
Now you have to give the category a name.
Click OK. 
Now we will go onto how to send an e-mail to the group.
Click Mail. 
Click Compose.
On the To line begin type the name of the category.
When you begin type the name of a group the name will pop
up. 
This group is
called gloria-friends. Click on the group.
The name will appear on the To: line.
Type the message and click send.