Depending on how your AD directory is organized, you might be able to
filter using the "peoplepicker-searchadcustomquery" application property.

See
blogs.msdn.com/.../multi-forest-cross-forest-people-\
picker-peoplepicker-searchadcustomquery.aspx

for more info on the various properties you can use to customize the
people picker.

Isn't there a variable that I can put in under SSP>User Profiles and
Properties>View import  Connections>Edit Properties of SSP>under the
User Filter field. I thought that this would be a valid place to put
a command/variable to exclude  this AD group(s) from being imported.

Does that make sense?

I know how to *include them*, maybe you can take this and figure
out how not to? I didn't think it imported them by default, thus the
reason we tracked down the below originally.

(|(&(objectCategory=person)(objectClass=user))(&(objectCategory=group)
(o
bjectClass=group)))

To exclude  the group  simply add a "!" in front of the group element. For
example:

(&(objectCategory=Person)(objectClass=User)(!memberOf=cn=contractors,ou=
External Users,dc=mydomain,dc=com))

Would exclude users who were a member of the group Contractors in the
External Users OU of mydomain.com.

Thank you guys very much. I'd been looking for that statement for
over a month!