@Sean, yours seems to work the correct way. Mine does not, so something is different. I have Win7. On my computer, when I press and hold Alt+Tab (and ignoring the fact that the selection goes round in circles!), the current window is shown at the front of the line and the next window is shown to the right. In your case, the next window is the previous window. In my case, the next windows are the windows in the group, not previous window.
So in the example below, I have Word and 3 Excels open. I click on Book2 first, then click on Word. I then press Alt+Tab once back to Book2. I then press Alt+Tab once again and instead of going back to Word, I go to Book4. At that point, you can see in the alt tab popup that the 3 Excel windows are together, instead of Word being first in the list. I then continue to Alt-Tab and I am taken from Book4 to Book3 and back to Book4.
