I'm not sure how to use the GroupBy clause when querying a list. The SPListItemCollection or datatable looks exactly the same regardless of the groupby clause.
SPQuery query = new SPQuery();
query.Query = "<GroupBy><FieldRef Name=\"Area\"/></GroupBy>";
DataTable result = list.GetItems(query).GetDataTable();
// result.Rows.Count = Same as ungrouped query
Is GroupBy only supported by Lists.asmx webservice?
Found a reference on MS Social which suggests it's not supported on the SPSiteDataQuery object http://social.msdn.microsoft.com/Forums/en-US/sharepointdevelopment/thread/ab8df6f5-35a0-401e-88cb-3eb31362bf0c/