To show an example of how Jack's construction works, here's a specific example:
It's well-known that the non-negative integers $\mathbb{Z}^{\geq 0}$ form a group under the operation $\oplus$ of nim-addition (or equivalently, under bitwise exclusive-or), with identity $0$ and each number being its own inverse. This infinite group (which is the projective limit of the product of $n$ copies of $\mathbb{Z}/2\mathbb{Z}$ as $n\to\infty$ in the obvious way) has finite subgroups corresponding to the restriction to $0\leq n\lt 2^i$ for each $i$.
What's less-known is that there's also a multiplication operation, nim-multiplication, which is compatible with nim-addition and forms a ring (in fact, a field!) over $\mathbb{Z}^{\geq 0}$. One way of defining the multiplication is to set $\alpha\otimes\beta = \mathop{mex}(\alpha'\otimes\beta\oplus\alpha\otimes\beta'\oplus\alpha'\otimes\beta' : \alpha'\lt\alpha, \beta'\lt\beta)$, where $\mathop{mex}()$ refers to the minimal excluded value, the smallest number not in the given set (under this notation, nim-addition itself can be defined by $\alpha\oplus\beta = \mathop{mex}(\alpha'\oplus\beta, \alpha\oplus\beta')$); another (admittedly more straightforward) way is as the projective limit of the Galois fields of order $2^{2^n}$; and much as in the addition case, the restrictions (in this case, the individual fields of size $2^{2^i}$) are all finite subfields. Here (swiped from Wikipedia) is the multiplication table for $n\lt 16 = 2^{2^2}$:
$$\begin{matrix}
0&0&0&0&0&0&0&0&0&0&0&0&0&0&0&0\\
0&1&2&3&4&5&6&7&8&9&10&11&12&13&14&15\\
0&2&3&1&8&10&11&9&12&14&15&13&4&6&7&5\\
0&3&1&2&12&15&13&14&4&7&5&6&8&11&9&10\\
0&4&8&12&6&2&14&10&11&15&3&7&13&9&5&1\\
0&5&10&15&2&7&8&13&3&6&9&12&1&4&11&14\\
0&6&11&13&14&8&5&3&7&1&12&10&9&15&2&4\\
0&7&9&14&10&3&13&4&15&8&6&1&5&2&12&11\\
0&8&12&4&11&3&6&15&13&5&1&9&6&14&10&2\\
0&9&14&7&15&6&1&8&5&12&11&2&10&3&4&13\\
0&10&15&5&3&9&12&6&1&11&14&4&2&8&13&7\\
0&11&13&6&7&12&10&1&9&2&4&15&14&5&3&8\\
0&12&4&8&13&1&9&5&6&10&2&14&11&7&15&3\\
0&13&6&11&9&4&15&2&14&3&8&5&7&10&1&12\\
0&14&7&9&5&11&2&12&10&4&13&3&15&1&8&6\\
0&15&5&10&1&14&4&11&2&13&7&8&3&12&6&9\\
\end{matrix}
$$
You can clearly see the subfield of order $4=2^{2^1}$ embedded in the top left corner of this multiplication table; you can also see that the diagonal is a permutation of $[0\ldots 15]$, or in other words that for each $x\in F_{16}$ there's a unique $y$ such that $y\otimes y=x$. (This isn't a proof for the arbitrary case, of course, but that can also be done; I believe Conway's On Numbers And Games covers the uniqueness of square roots). Determining what group of order 16 the operation $a\circ b = \sqrt[\otimes]{a^{\otimes2}\oplus b^{\otimes2}}$ generates is a nice exercise (hint: what's the inverse of $a$ under $\circ$?); in fact, $\circ$ here turns out to be even simpler than might be expected, thanks to a straightforward-but-unexpected identity! (another hint: expand $(a\oplus b)\otimes(a\oplus b)$.)