How to Group People into Lists in Google Buzz

 I figured out a way that people can group people they are following in Google Buzz into groups.

I noticed that as I began following people in Google Buzz that they began showing up in the Google Reader "People You Follow" section. Here are the steps you need to do to start grouping people.
 

1. Create a Group in Google Contacts http://www.google.com/contacts 
2. Follow the user in Google Buzz. https://mail.google.com/mail/?shva=1#buzz 
3. Go to http://reader.google.com and click on "Shared items" and then
   "Sharing Settings" http://www.google.com/reader/view/#friends-manager-page 
4. Select the checkbox of the Google Contacts Group for "Who can comment on your shared items?" 
5. (You can do this for all of the groups that you would like to group by in Google Buzz and you will only need to do this once for each group you would like to create for Google Buzz.
6. In Google Reader now click on the user in the "People you follow" section and in the top header of their profile information click on "Add to Group"
7. Click on the "Add" link next to all the groups you would like to add that person to.

Voila! You now have the Goole Buzz user sorted into a group/list.
I am assuming that in the future Google will integrate these Gmail/Google Reader groups together with Google Buzz making it much easier to filter the people you follow into Google Buzz lists.
Currently there are no groups visible in Google Buzz but this is a way to start filtering your current BUZZers.
Happy BUZZing and please let me know if this works for you.