diff --git a/terminatorlib/newterminator.py b/terminatorlib/newterminator.py
index 7df9d86f..74d46c3a 100755
--- a/terminatorlib/newterminator.py
+++ b/terminatorlib/newterminator.py
@@ -49,8 +49,8 @@ class Terminator(Borg):
 
     def register_terminal(self, terminal):
         """Register a new terminal widget"""
-
         self.terminals.append(terminal)
+        terminal.connect('ungroup-all', self.ungroup_all)
 
     def deregister_terminal(self, terminal):
         """De-register a terminal widget"""
@@ -63,10 +63,21 @@ class Terminator(Borg):
         for terminal in self.terminals:
             terminal.reconfigure()
 
+    def create_group(self, name):
+        """Create a new group"""
+        if name not in self.groups:
+            self.groups.append(name)
+
+    def ungroup_all(self, widget):
+        """Remove all groups"""
+        for terminal in self.terminals:
+            terminal.set_group(None, None)
+        self.groups = []
+
     def group_hoover(self):
         """Clean out unused groups"""
 
-        if self.config['autoclean_groups']:
+        if self.autocleangroups:
             todestroy = []
             for group in self.groups:
                 for terminal in self.terminals:
diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index fc54f4d5..41b1887a 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -270,7 +270,7 @@ class Terminal(gtk.VBox):
         menu = gtk.Menu()
         groupitem = None
 
-        item = gtk.MenuItem(_('Assign to group...'))
+        item = gtk.MenuItem(_('New group...'))
         item.connect('activate', self.create_group)
         menu.append(item)
        
@@ -374,15 +374,32 @@ class Terminal(gtk.VBox):
 
         return(widget_x, menu_y, 1)
 
+    def set_group(self, item, name):
+        """Set a particular group"""
+        if self.group == name:
+            # already in this group, no action needed
+            return
+        self.group = name
+        self.titlebar.set_group_label(name)
+        self.terminator.group_hoover()
+
     def create_group(self, item):
         """Trigger the creation of a group via the titlebar (because popup 
         windows are really lame)"""
         self.titlebar.create_group()
 
-    def really_create_group(self, groupname):
+    def really_create_group(self, widget, groupname):
         """The titlebar has spoken, let a group be created"""
         self.terminator.create_group(groupname)
-        self.group = groupname
+        self.set_group(None, groupname)
+
+    def ungroup(self, widget, data):
+        """Remove a group"""
+        # FIXME: Could we emit and have Terminator do this?
+        for term in self.terminator.terminals:
+            if term.group == data:
+                term.set_group(None, None)
+        self.terminator.group_hoover()
 
     def set_groupsend(self, widget, value):
         """Set the groupsend mode"""