Hello
You may create different Privacy groups in User End -> My Account -> Privacy Settings -> My Privacy Groups block and put your friends A, B, C in Group 1 and D, E in Group 2. Then you may change privacy of different Profile page blocks associating them with newly created Privacy Groups. I think it should work exactly as you need.
Upon further inspection, I wonder if this will be too complicated for my users. I would like for them to be able to assign their friends to the various default groups, and then choose which one of those groups can view that content/side block.
For instance, "Friends" would be the default privacy setting for all blocks. Then, a person could have a "family" privacy group that would be even more private than the Friends group. A "normal" friend would not be able to view that block, but people who you assign to the "Family" group would be able to.
I don't think will have a need for the users to create additional privacy groups beyond that... just having "friends" and the "family" should suffice... is there any way I can make this easier for my users?
So I need:
1. an easy way for users to add friends to a pre-existing group
2. A way to add that group to be available for all users, or to repurpose an existing group (faves?)