In Groove infrastructure, there are 2 essential servers, Groove Server 2007 Manager and Groove Server 2007 Relay. The former is where a Groove domain gets created and accounts populated (while the account configurations are actually stored in an associated SQL backend.)
For a non-managed account, i.e. one configures/activate a Groove account without a configuration code (as shown below) via internet, the account is created in a Groove Server 2007 Manager and the configuration stored in an associated SQL backend both managed by Microsoft in the clouds. There is however, as the name indicated, no management to a non-managed account once created. Logically a non-management Groove client works similar to a pre-paid cell phone. It looks and functions just like a normal phone, other than there is no service contract with a cell phone service provider and a pre-paid phone will cease functioning once the pre-paid minutes are used up. A non-managed Groove client functions just like a managed client other than it is not associated with any Groove domain from a Groove user's view. As well a non-managed client is entitled to use Microsoft public infrastructure in the clouds for 5 years once configured.