You're quite right Paul, I did over look the two options you've listed above as I just used the 'Add New Usergroup' option within the 'Usergroup Manager' a created the usergroup manually, replicating the 'Registered Users' group.
However after your comment I deleted the group (15) and created a new 'Miserable Users' group using the 'Create Permissions Based off of Usergroup' option within 'Add New Usergroup' to see what happened and I'm afraid it's just the same. My test 'Registered User' can still see my 'Private Forums'.
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