Your functions.php code is correct. I copied the code from your post and pasted it into my functions.php then changed the usergroupid to 6 (admin) and it worked fine.
Make sure when you add the $image text to your postbit that its all smallcase, just like the code in functions.php. I don't know what else could be causing it not to work for you.
You have actually added some people to the new usergroup, correct? If nobody is in that usergroup then you're not gonna see anything. Just to test it, try changing the usergroup ID to 6.. You should then see the image in all admins posts.
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