I have removed the story contribute menu Item, but would like to enable it for a particular group, Is this possible ? also when a story is submited is it possible to write a small piece of code,
i.e. >
if contributor in group = false, then halt
to filter out postings from all users ?

Have a look at CUSTOM_menuEntries in your lib-custom.php (and note that it is commented out ...). It shows you how to make a link show up only for logged-in users. You can do the same for members of an group, using SEC_inGroup('Group Name') instead of checking $_USER['uid'].

bye, Dirk