Hey Jason,
Subreports aren't really designed to be an alternative to grouping. They provide you with a way of getting a subset of information not readily available with the sql you generate in your main report.
Subreports pretty much work the same way as a subselect does in sql, and they can work in exactly the same way as your main report, with one exception; A subreport can't itself contain another subreport.
Check out the crystal help. I think there's a pretty decent walkthru with Crystal Reports.
-N