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I would not put both users and groups into the same dropdown. Reasoning behind this is that then the collection for dropdown would have to use the correct variable type for eventual assignment (AssignmentTarget). To get the entire list into the right type, there would have to be a loop doing steps 3-5 above for all the users to be put into the list and similar for groups as well. I do not think this is not a good idea as it will increase the already annoying loading time of the form. If two dropdown lists at the same time are confusing, radio buttons to select desired assignment type (group/user) would seem to be appropriate answer.

All the usual disclaimer things apply:
- Don't do this in your production ServiceDesk before testing it.
- Consider this an idea or example.
- It is a customization and is not supported.

If you have modified the SD.Feeder.TechnicianIncidentForms already, make sure you have a backup of it, before making these...

This comes from a Connect thread with question about the 'Primary Contact does not exist' error:
https://www-secure.symantec.com/connect/forums/specified-primary-contact-does-not-exist-portal

References to specific components and steps are based on 7.1 SP1 version of the webform, I don't expect the flow to be much different in earlier versions but I don't have test boxes for earlier versions right now to verify that.

How it is built to work:

If you type 'user' into the field and click 'Check if User Exists' button (the one with person and checkmark), this result is expected. If you look at the workflow behind this button, it searches for user by e-mail address field, using the contents of that field. The intended usage of this functionality is to click it after entering full e-mail...

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