Thanks for your answer, Duane. I am the Owner of the Main group that Steve referred to and I had made Steve the Moderator of the sub-group but I hadn't changed the Settings of the main group and Members were not allowed to Upload files. If this is the default condition, other Owners may like to take note.
As Duane has implied, one needs to scroll down to find the Files section under Settings. I was too lazy to look that far!
There was no problem with the storage quota for this brand new sub-group.
