RE: What do you consider a good group?
Depends on your experience, the time you have to practice and if you get any sort of instruction. It also depends on what you want to do in my opinion.
You don't need to have target archer skills in order to hunt if you know your limits. It certainly doesn't hurt though.
3 inch groups for a new archer with hunting as the goal is plenty good in my eyes. As long as you can do it consistently with your hunting gear on. Now if you plan on shooting spots you might want to set your goals a bit higher.
3-4 inches at 20-30 yards is perfectly lethal if you place your shots well ( knowing where to put them).
I know guys that don't really shoot better than that, if that well and they don't have any trouble taking game year after year. The key is they can do it consistently and are very good hunters. They know their game, know how to stay calm and know where to put the arrow. They also have confidence that their equipment will get the job done.
On the other hand I have a buddy that is awesome on the 3-D range and at shooting spots. This guy is like human range finder and his arrows usually hit the mark. In the 5 or 6 years I have known him he has only killed one deer to my knowledge. He is great marksman, but a piss poor hunter.
I'm not telling you to quit now, or that you shouldn't strive to be better. Many people get good enough at 20 yards that they are afraid to group arrows at 20 yards for fear of damaging them. However 3 inch groups for a new archer is nothing to be ashamed of. Some days that's all I can pull off if I don't have my head together.
Paul