Group by for node-reference

I want to create a cck field on "content type A" that allows a user to reference multiple nodes of "content type B". "Content Type B" is categorised by taxonomy so I hoped with this module I could populate a node-reference list with a view instead of the content type so that the list was grouped by the taxonomy value.

Would it be that node-reference needs a plugin to understand the views_groupby_pack list type or that views_groupby_pack needs to call a node-reference api? I want to create something similar to a taxonomy list in the node (with the groupings), the reason Im not using taxonomy is because I want to create custom fields on "Content Type B".

Example...

Public Universities
Uni A
Uni B
Uni C
Religious Universities
Uni D
Uni E

Where "Public Universities" is not clickable. I am trying to associate a user (using nodeprofile) with several universities. Any help or suggetions would be very welcome.

Thanks
Will