Cameron,
However, it appears that we should be able to set the "Group
Moderation Setting" to make this the default for the group.
Yes, I strongly recommend this method over ever setting anyone to
Override: not moderated.
Unfortunately, I am
unable to find where I can change this setting.
On the group's Settings page, in the Spam Control section. There's
a checkbox for Moderated. This will control posting by any
member that doesn't have an override set.

If your group has the Restricted Membership box checked
then unchecking Moderated is all you need to do.
If you don't want Restricted Membership, you can check New
Users Moderated instead. Then you can manually change new
members to Use Group Moderation Setting to immediately
unmoderate them.

Or, set Unmoderate After to 1 and simply approve each new
member's first post. That will automatically change them from Override:
new user moderated to Use Group Moderation Setting,
and is generally much less effort than manually changing them.
Note: Moderated and New Users Moderated are not
mutually exclusive. You can leave New Users Moderated
checked as your group's normal state and you are free to check and
uncheck Moderated at need (e.g. to quell a flame war or
other disturbance) without accidentally unmoderating all the new
users.
Shal
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