You can create groups to set up separate work areas for your students.
1. From the left navigation menu under Administration, click Groups. Then click Create Groups
2. Then click Create Groups. You can either let Moodle automatically and randomly separate students into a number of groups, or you can manually select students to put into specific groups.
3. After you've created a few groups, you can add/remove students to/from them.
3. Once you set up groups you can use them in Forum and other areas. As in the Forum example, you can either let students only see their own group discussions, or both group and whole class. You would do this in the Forum setting screen:
Moodle docs for Groups
Last Updated: 11/18/09