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At the start of a match, all player's on ONE team have their Elo ratings totaled and divided by 8 (max players). You may realized that this is simply the AVERAGE of a team's total Elo. Team 1's average and Team 2's average are then used to calculate the probability of win (as per the formulas above). If Team 1 beats Team 2, then the appropriate math as above is applied to each player using the probability score calculated by the team averages.
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The maximum amount a player’s score can change in a single match is ±50.
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If the Match Maker determines that you're going to win and you actually win, then your Elo score isn't going to change very much (if at all). The same applies to a prediction of loss and you actually lose, your score may drop but it will be slight.
So the probability of a win for the group is what modifies the amount of ELO change for each member of the group. In your scenario...the probability of a win for Team A is 93.024% and Team B's is 6.976%.
This probability is determined using the following formula: 1 / 1 + 10^ (High ELO - Low ELO / 400)
New ELO scores are then calculated with the following formula:
New Rating = Old Rating +/- Maximum change x (WinFlag - Probability of the win)
Team A (Group Rating = Average of individual ratings = 1575):
Win:
800 = 800 + 50 x (1 - .9302) = 803.49
1300 = 1300 + 50 x (1 - .9302) = 1303.49
2200 = 2200 + 50 x (1 - .9302) = 2203.49
2000 = 2000 + 50 x (1 - .9302) = 2003.49
Loss:
800 = 800 - 50 x (1 - .0698) = 753.49
1300 = 1300 - 50 x (1 - .0698) = 1253.49
2200 = 2200 - 50 x (1 - .0698) = 2153.49
2000 = 2000 - 50 x (1 - .0698) = 1953.49
Team B (Group Rating = Average of individual ratings = 1125):
WIn:
500 = 500 + 50 x (1 - .0698) = 546.51
1000 = 1000 + 50 x (1 - .0698) = 1046.51
2000 = 2000 + 50 x (1 - .0698) = 2046.51
1000 = 1000 + 50 x (1 - .0698) = 1046.51
Loss:
500 = 500 + 50 x (1 - .9302) = 496.51
1000 = 1000 + 50 x (1 - .9302) = 996.51
2000 = 2000 + 50 x (1 - .9302) = 1996.51
1000 = 1000 + 50 x (1 - .9302) = 996.51
Personally, I see this system working quite well as designed. A team with a higher average ELO is predicted to win, and wins, it gets a small increase while the losing team takes a small decrease. If the team with a lower average ELO wins, it gets a large increase in ELO, and the team with higher ELO that loses, gets a large decrease in ELO.

Edited by Jordan Youngblood, 10 February 2013 - 09:44 AM.