Right now it is not possible to add a remote group in a Connector so that it becomes a member of a local group. Doing so will result in the following error:

2013-06-27 22:16:11,616 http-8260-6 ERROR [console.action.group.UpdateGroupMembers] Failed to add groups to group
com.atlassian.crowd.exception.ReadOnlyGroupException: Group <LDAPtest1> is read-only and cannot be updated

Where LDAPtest1 is the Remote group.

This is also highlighted here: https://jira.atlassian.com/browse/CWD-3090

Steps to Reproduce:

1. Create a Connector directory, make sure that the Manage Groups Locally option is checked
2. Create a local group into this Connector
3. Sync the directory, and try to add a remote group that is synced into the locally created group in Step 2