GROUP BY has a very specific meaning that is distinct (heh) from the DISTINCT function.
GROUP BY causes the query results to be grouped using the chosen expression, aggregate functions can then be applied, and these will act on each group, rather than the entire resultset.
Here's an example that might help:
Given a table that looks like this:
name
------
barry
dave
bill
dave
dave
barry
john
This query:
SELECT name, count(*) AS count FROM table GROUP BY name;
Will produce output like this:
name count
-------------
barry 2
dave 3
bill 1
john 1
Which is obviously very different from using DISTINCT. If you want to group your results, use GROUP BY, if you just want a unique list of a specific column, use DISTINCT. This will give your database a chance to optimise the query for your needs.