Unfortunately, Access truncates memo fields to the same length as text fields (255 characters) when grouping is involved, for practical reasons associated with how grouping is implemented. This really rules out the use of Group By or Select Distinct where memo fields are involved - with one exception for Group By queries.
Depending on the content of the memo field in relation to the other grouped fields, you may be able to use a totals (Group By) query instead of your Select Distinct one. If you substitute the memo value with a calculated field using one of the aggregate functions such as First, Last, Max or Min as a 'dummy function' on the memo field the memo field value will be returned without truncation.
The down side with the use of aggregates as 'dummy functions' to retain the memo field values is that if you do indeed require grouping on the memo contents then First, Last etc will not be suitable, as they will return specific values consistent with their purpose, not the underlying grouping you may require.
Whatever you do, don't apply SELECT DISTINCT to the results of such a query, or use it in another query with a GROUP BY clause on the calculated field - the memo field will once again be truncated back to 255 characters if you do!
-Stewart