I don't believe you should have a problem if your permissions are setup correctly. I have 22 different usergroups and we have no problem with the activity stream. Permissions can get a bit weird if you have secondary groups, maybe that is what you are running into.
If I am wrong, or this is a known bug... please let me know. I will them look into why mine are working. I doubt I changed any code there, but I may have.
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