It is curious that the error message has a forward slash, rather than a
backslash:
>>CreateUser:  Error 0x80004005: Failed to get group 'TESTPC/Users'. 

Both the Users group and the Administrators group are in the 'Builtin'
domain, but the name of the group might be localized so using the English
name won't work on a German OS.
http://technet.microsoft.com/en-us/library/cc756898%28v=ws.10%29.aspx

In my mba I use code like this to get the localized name of the Group.
                    string aSID = new
SecurityIdentifier(WellKnownSidType.BuiltinAdministratorsSid,
null).ToString();
                    string domain_adminsGroupName = new
System.Security.Principal.SecurityIdentifier(aSID).Translate(typeof(System.Security.Principal.NTAccount)).ToString();
                    this._adminsGroupName =
domain_adminsGroupName.Split('\\').Last();

You could use some other method like a bafunctions.dll in wixstdba or a ca
if the msi is not burn driven.  But noticed that I pass the domain\\name, as
returned, string returned to the Name attribute of util:Group.  (It appears
this is a contrast to your approach and may indicate an issue with the
extension.)

<util:Group Id="AdminGroup" Name="[ADMINSGROUPNAME]"/>
<util:User Id="AdminUser" Domain="[MYDOMAIN]" Name="[MYACCOUNT]"
CreateUser="no" >
      <util:GroupRef Id="AdminGroup"/>
</util:User>
 
This approach is working for me.



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