When I target a specific item in a Portal Listing to a specific
audience, then modify the "Custom Properties" section of the Grouped
Listing web part by choosing to "Group By" GROUP, everyone sees the
listing regardless of the audience to which they are assigned -- not
just the users belonging to the specific audience to which that one
item in the list is targeted.

The only way I can get the Portal Listings to display items to
specific audiences is to "Group By" AUDIENCE. So we lose the
advantage seeing items in the Portal Listing organized by group.

For example, say there is a group named "Forms". This group would
contain links to many forms: some for Accounting, others for Sales,
etc. We would want the group name of "Forms" to display in the
Grouped Listing Web Part, but only "items" (links to forms) for a
specific audience (Accounting, Sales, etc) to display under the
group name. That way we have the organizational advantage of
Grouping items (forms in this case), but users would see only the
forms they need rather looking through all those available.

This seems to eliminate any advantage of targeting specific items
within Portal Listings groups to specific audiences, and still have
a category-like organization of links display on the Grouped Listing
web part.

Am I wrong here?