I know that permissions are controlled by admins. I want regular users to control a different set of permissions, for example my users will have pictures, friends list, personal information in there profile. I want them to be able to create groups and limit access so certain groups can see certain content. Is there a module for this or do I need to put on by big boy paints and start coding?
Yes! Check out the Role Delegation module. Here is a quote from its project page:
... allows site administrators to grant some roles the authority to assign selected roles to users, without them needing the administer permissions permission.