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Basic question about bid groups

I'm sure I've missed it on your help pages, but although you explain how to set up a bid group etc. I can't see the term 'bid group' defined.

Two questions:

1) Is a 'bid group' a collection of my bids which hopefully is going to result in one successful bid? i.e. having got one the others are auto-cancelled?

2) If this is correct, how do I deal with a seller who has 5 identical items appearing at very close gaps (i.e. seconds) from each other. Can your bid group facility handle that? I only want one of the items, but they may be too close for your system to handle without risking the chance of buying more than one item.

Thanks.
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