diff --git a/terminatorlib/newterminator.py b/terminatorlib/newterminator.py
index 3c8398b8..6829925d 100755
--- a/terminatorlib/newterminator.py
+++ b/terminatorlib/newterminator.py
@@ -103,6 +103,7 @@ class Terminator(Borg):
     def create_group(self, name):
         """Create a new group"""
         if name not in self.groups:
+            dbg('Terminator::create_group: registering group %s' % name)
             self.groups.append(name)
 
     def ungroup_all(self, widget):
@@ -121,17 +122,20 @@ class Terminator(Borg):
         """Clean out unused groups"""
 
         if self.config['autoclean_groups']:
+            inuse = []
             todestroy = []
+
+            for terminal in self.terminals:
+                if terminal.group:
+                    if not terminal.group in inuse:
+                        inuse.append(terminal.group)
+
             for group in self.groups:
-                for terminal in self.terminals:
-                    save = False
-                    if terminal.group == group:
-                        save = True
-                        break
-
-                    if not save:
-                        todestroy.append(group)
+                if not group in inuse:
+                    todestroy.append(group)
 
+            dbg('Terminator::group_hoover: %d groups, hoovering %d' %
+                    (len(self.groups), len(todestroy)))
             for group in todestroy:
                 self.groups.remove(group)
 
diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 6d689649..da1ada97 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -285,7 +285,7 @@ class Terminal(gtk.VBox):
         item = gtk.MenuItem(_('New group...'))
         item.connect('activate', self.create_group)
         menu.append(item)
-       
+
         if len(self.terminator.groups) > 0:
             groupitem = gtk.RadioMenuItem(groupitem, _('None'))
             groupitem.set_active(self.group == None)
diff --git a/terminatorlib/titlebar.py b/terminatorlib/titlebar.py
index f44c5571..852b2d11 100755
--- a/terminatorlib/titlebar.py
+++ b/terminatorlib/titlebar.py
@@ -136,7 +136,7 @@ class Titlebar(gtk.EventBox):
     def groupentry_activate(self, widget):
         """Actually cause a group to be created"""
         groupname = self.groupentry.get_text()
-        dbg('creating group: %s' % groupname)
+        dbg('Titlebar::groupentry_activate: creating group: %s' % groupname)
         self.groupentry_cancel(None, None)
         self.emit('create-group', groupname)