I want my community to have a family feel about it. I was trying to figure out how to make a userlist that would group family members (father, mom, son, daughter and etc) together. This way my first userlist would filter on family name.

Smith
Williams
etc

When you click on the smith group it will show you every user in that group (father, mom, son, daughter and etc).

Is there a way to put people in the community in groups like described above and then make a user list as described?

Thanks

you could try using the GroupJive component. www.groupjive.org Users could then create a group for their family and invite other members of the family to join.