Hmm, I had intended the 'Vertex Group' limiting to only apply to 'vertex-only' bevel mode, since there were no bevel vertex weights the way there are bevel edge weights. And the usage text for 'Vertex Group' indicates that, so it is working as intended.

However, I can see that using it to limit edge bevels too (only bevel edges where both ends of the edge are in the vertex group) could also be useful, and shouldn't be that hard to add, so I'll look into adding that functionality after I fix the other bugs I have assigned.

Thank you Howard!

Closed duplicate bug:
https://projects.blender.org/tracker/index.php?func=detail&aid=36031&group_id=9&atid=498

any updates here...?
i have same issue here on my Windows 7 64bit, blender-2.68-release .. blender-2.68-r60375-win64.zip
i attached an additional blend file ("issue - bevel.blend")...
and the "Clamp Overlap" option seems to does not work as well - see the outer corners, they looks strange.

Implemented support for having the bevel modifier able to use vertex groups for affecting edge bevels in r2a8f6e2fd9dd