WHen I create a group with a -1 to block someone out of townhall or something like that.

When I remove that group from a members profile, they still seemed to be blocked, even after they clear the cookies, etc, I have logged in as them under the edit profile... and the forums they were formally blocked from posting... remains still blocked..

Thinking that is a bug

anyone else with this problem/solution?

I don't use the -1 much myself. But possibly you got a snag when you updated the database.
The info is stored in table USER_GROUPS.
You could take a peek there and see if the user is still assigned to the group with the -1.
You will need to know the member number and the group number