1. Its an example ip address, one that no one can have in reality - why ?
2. Change it then, thats the point of an option.
3. You would need to use the Automatic Ban Infraction - to make the usergroup visible in the dropdown list it must be a "bannable group" (usergroup option). I believe (untested) that once youve added it, you can remove the usergroups bannable status.
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