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Error #172088

The groups required to manage users for your site are missing. You can either create them on your own as described here, or you can use advanced permissions to manage permissions for your site.

User's solution

This works!
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Microsoft KB article
Error when you invite external users to your site: "The groups required to manage users for your site are missing":
http://support.microsoft....spid=15833

(Knowledge Base)
Oct 19, 2011