`groups` ignores /etc/groups?

Question

What could be going on here?

dylan/var$ ls -ld www
drwxrwxr-x 2 root webdev 4096 2011-03-19 05:13 www
dylan/var$ grep webdev /etc/group
webdev:x:1001:dylan
dylan/var$ touch www/test
touch: cannot touch `www/test': Permission denied
dylan/var$ groups
dylan adm dialout cdrom plugdev lpadmin admin sambashare

Answer 1

Group membership is determined on login. Log out, and then log back in.