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
Also I found a topic that was talking about a custom web app that manages SP users/groups and AD users/groups.