The connection type is only a parameter at this time, not a physical change on the actual pipe itself. You can model a Grooved connection on the fittings if you choose, but not currently on the pipe itself. I recognize that's not ideal, but its the sate of the program today.
As for Pipe Sizes, you will need to modify the PipeSizes.xml file in the Program directory of your RME 2008 installation. This is where you can define the sizes available for each connection type. I also recognize that modifying an XML file is not ideal, but it gets the job done. We're working to make that process better...about all I can say about it now.
As for the management of this once you are in a model, here's how I see it:
1. You will have a System Family Type for each Pipe Type you'll use, each will be associated with the Material and Connection type you want.
2. With one of the System Family Types selected, only the sizes you've defined for that Material/Connection configuration in the PipeSizes.xml will be available.
3. If you want to change between connections at the 50 threshold, you will need to change the System Family Type, no automatic way to change it currently.
I hope that clears things up.
Cheers,
Kyle B
Revit MEP Product Manager
Kyle Bernhardt
Director
Building Design Strategy
Autodesk, Inc.