Are we allowed to form a group whose members are comprised of team members that come from the different universities?

Perfectly OK (look at 2005 SW Design Winners ;)))

2004 PH Imagine Cup Winners came from different universities too.

Ask LJ and Mark :)

Thanks for the information. A lot of local students are confused that's why. Even 2005 winners are from different schools?

Yes, Stas' (Zadig) team was composed of students from two different universities. Truth of the matter is, you can even team up with people in other country as long as you can manage to pull it off.  No matter what is the composition of the team, at the end, you will represent the country that hosted the local competition you participated in.

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De La Salle University | National Taiwan University