@modemlooper I think there might be something off about the groupblog plugin.
If you checkout the support forum tab for that plugin, you will see my description of the issue and how to replicate it. Basically, the bp-group roles don't map correctly to the group-blog roles.
Here is the link to the topic:
http://wordpress.org/support/topic/members-group-roles-dont-update-in-the-group-blog?replies=3
Please let me know how I can help. I don't code - at least not yet. But I can test.