I used the following method:

In Outlook, compose a mail to the DL.
Then click the little + next to the DL name, it will expand the group 
showing all email addresses/names in the TO field.
Select all, then Copy.
Go into gmail, and create your group. Select the group, then click the add 
members button
Paste into the dialog
Click add

Voila :)

Hope this helps some frustrated folks.... 

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