Hi Sandy and sorry for such a late reply.
The Show/Hide user groups options in QListForm applly only to the SharePoint users group not to AD groups.
I did a litle bit of research in internet and I found that many people wonder how to link AD and SP groups.
This is an interesting blog entry that speaks about that
http://brijesh.spaces.live.com/blog/cns!BFBD772FBDA58C6D!337.entry
Also I found a topic that was talking about a custom web app that manages SP users/groups and AD users/groups.