diff --git a/group/group.php b/group/group.php
index 260a3578e77..fdab5a6d8ca 100644
--- a/group/group.php
+++ b/group/group.php
@@ -76,9 +76,6 @@ if ($success) {
                 */
                 $success = (bool)$groupid = groups_create_group($courseid); //$groupsettings);
                 
-                if ($groupingid != GROUP_NOT_IN_GROUPING) {
-                    $success = groups_add_group_to_grouping($groupid, $groupingid);
-                }
             }
             elseif ($groupingid != $newgrouping) { //OK, move group.
                 // Allow groups to be created outside of groupings
@@ -159,109 +156,112 @@ if ($success) {
                  "-> $strgroups", '', '', true, '', user_login_string($course, $USER));
 
     $usehtmleditor = false;
-?>
-<h3 class="main"><?php echo $strheading ?></h3>
 
-<form action="group.php" method="post" enctype="multipart/form-data" class="mform notmform" id="groupform">
+    echo '<h3 class="main">' . $strheading . '</h3>'."\n";
+
+    echo '<form action="group.php" method="post" enctype="multipart/form-data" class="mform notmform" id="groupform">'."\n";
+    echo '<div>'."\n";
+    echo '<input type="hidden" name="sesskey" value="' . s(sesskey()) . '" />'."\n";
+    echo '<input type="hidden" name="courseid" value="' . s($courseid) . '" />'."\n";
+    echo '<input type="hidden" name="grouping" value="' . s($groupingid) . '" />'."\n";
 
-<input type="hidden" name="sesskey" value="<?php p(sesskey()); ?>" />
-<input type="hidden" name="courseid" value="<?php p($courseid); ?>" />
-<input type="hidden" name="grouping" value="<?php p($groupingid); ?>" />
-<?php
     if ($groupid) {
-        echo '<input type="hidden" name="group" value="'. $groupid .'" />';
+        echo '<input type="hidden" name="group" value="'. $groupid .'" />'."\n";
     }
 
     if ($delete) {
         /*echo 'Are you sure you want to delete group X ?';
         choose_from_menu_yesno('confirmdelete', false, '', true);*/
-?>
 
-        <p><?php print_string('deletegroupconfirm', 'group', $strname); ?></p>
-        <input type="hidden" name="delete" value="1" />
-        <input type="submit" name="confirmdelete" value="<?php print_string('yes'); ?>" />
-        <input type="submit" name="cancel" value="<?php print_string('no'); ?>" />
-<?php
+        echo '<p>' . get_string('deletegroupconfirm', 'group', $strname) . '</p>'."\n";
+        echo '<input type="hidden" name="delete" value="1" />'."\n";
+        echo '<input type="submit" name="confirmdelete" value="' . get_string('yes') . '" />'."\n";
+        echo '<input type="submit" name="cancel" value="' . get_string('no') . '" />'."\n";
     } else {
-?>
-
-<div class="fitem">
-<p><label for="groupname"><?php
-   print_string('groupname', 'group');
-   if (isset($err['name'])) {
-       echo' ';
-       formerr($err['name']);
-   } ?>&nbsp; </label></p>
-<p class="felement"><input id="groupname" name="name" type="text" size="40" value="<?php echo $strname; ?>" /></p>
-</div>
-
-<p><label for="edit-description"><?php print_string('groupdescription', 'group'); ?>&nbsp;</label></p>
-<p><?php print_textarea($usehtmleditor, 5, 45, 200, 400, 'description', $strdesc); ?></p>
-
-<p><label for="enrolmentkey"><?php print_string('enrolmentkey', 'group'); ?>&nbsp;</label></p>
-<p><input id="enrolmentkey" name="enrolmentkey" type="text" size="25" /></p>
-
-<?php if ($printuploadpicture) {  ?>
-    <p><label for="menuhidepicture"><?php print_string('hidepicture', 'group'); ?>&nbsp;</label></p>
-    <p><?php $options = array();
-             $options[0] = get_string('no');
-             $options[1] = get_string('yes');
-             choose_from_menu($options, 'hidepicture', isset($group)? $group->hidepicture: 1, '');?></p>
-
-    <p><label ><?php /* for="imagefile" */ print_string('newpicture', 'group');
-        helpbutton('picture', get_string('helppicture'));
-        print_string('maxsize', '', display_size($maxbytes), 'group');
-        if (isset($err['imagefile'])) formerr($err['imagefile']);
-     ?>&nbsp;</label></p>
-    <p><?php upload_print_form_fragment(1, array('imagefile'), null,false,null,0,0,false); ?></p>
-<?php 
-    }
-
-    if ($groupid) { //OK, editing - option to move grouping.
-?>
-    <p><label for="groupings"><?php print_string('addgroupstogrouping', 'group'); ?></label></p>
-    <select name="newgrouping" id="groupings" class="select">
-<?php
-    $groupingids = groups_get_groupings($courseid);
-    if (GROUP_NOT_IN_GROUPING == $groupingid) {
-        $groupingids[] = GROUP_NOT_IN_GROUPING;
-    }
-    if ($groupingids) {    
-        // Put the groupings into a hash and sort them
-        foreach($groupingids as $id) {
-            $listgroupings[$id] = groups_get_grouping_displayname($id, $courseid);
-        }
-        natcasesort($listgroupings);
+        echo '<div class="fitem">'."\n";
+        echo '<p><label for="groupname">' . get_string('groupname', 'group');
         
-        // Print out the HTML
-        $count = 1;
-        foreach($listgroupings as $id => $name) {
-            $select = '';
-            if ($groupingid == $id) {
-                $select = ' selected="selected"';
+        if (isset($err['name'])) {
+            echo ' ';
+            formerr($err['name']);
+        } 
+        
+        echo '&nbsp; </label></p>'."\n";
+        echo '<p class="felement"><input id="groupname" name="name" type="text" size="40" value="' . $strname . '" /></p>'."\n";
+        echo '</div>'."\n";
+
+        echo '<p><label for="edit-description">' . get_string('groupdescription', 'group') . '&nbsp;</label></p>'."\n";
+        echo '<p>' . print_textarea($usehtmleditor, 5, 45, 200, 400, 'description', $strdesc, 0, true) . '</p>'."\n";
+
+        echo '<p><label for="enrolmentkey">' . get_string('enrolmentkey', 'group') . '&nbsp;</label></p>'."\n";
+        echo '<p><input id="enrolmentkey" name="enrolmentkey" type="text" size="25" /></p>'."\n";
+
+        if ($printuploadpicture) {
+            echo '<p><label for="menuhidepicture">' . get_string('hidepicture', 'group') . '&nbsp;</label></p>'."\n";
+            echo '<p>';
+            $options = array();
+            $options[0] = get_string('no');
+            $options[1] = get_string('yes');
+            choose_from_menu($options, 'hidepicture', isset($group)? $group->hidepicture: 1, '');
+            echo '</p>'."\n";
+
+            echo '<p><label >' . get_string('newpicture', 'group');
+            helpbutton('picture', get_string('helppicture'));
+            echo get_string('maxsize', '', display_size($maxbytes), 'group');
+
+            if (isset($err['imagefile'])) {
+                formerr($err['imagefile']);
             }
-            echo "<option value=\"$id\"$select>$name</option>\n";
-            $count++;
+
+            echo '&nbsp;</label></p>'."\n";
+            echo '<p>' . upload_print_form_fragment(1, array('imagefile'), null,false,null,0,0,true) . '</p>'."\n";
         }
-    }
-?>
-    </select>
-<?php } //IF($groupid) ?>
 
-<p class="fitem">
-  <label for="id_submit">&nbsp;</label>
-  <span class="f--element fsubmit">
-    <input type="submit" name="update" id="id_submit" value="<?php echo $strbutton; ?>" />
-    <input type="submit" name="cancel" value="<?php print_string('cancel', 'group'); ?>" />
-  </span>
-</p>
+        if ($groupid) { //OK, editing - option to move grouping.
 
-<?php } //IF($delete) ?>
+            echo '<p><label for="groupings">' . get_string('addgroupstogrouping', 'group'). '</label></p>'."\n";
+            echo '<select name="newgrouping" id="groupings" class="select">'."\n";
 
-<span class="clearer">&nbsp;</span>
+            $groupingids = groups_get_groupings($courseid);
+            if (GROUP_NOT_IN_GROUPING == $groupingid) {
+                $groupingids[] = GROUP_NOT_IN_GROUPING;
+            }
+            if ($groupingids) {    
+                // Put the groupings into a hash and sort them
+                foreach($groupingids as $id) {
+                    $listgroupings[$id] = groups_get_grouping_displayname($id, $courseid);
+                }
+                natcasesort($listgroupings);
+                
+                // Print out the HTML
+                $count = 1;
+                foreach($listgroupings as $id => $name) {
+                    $select = '';
+                    if ($groupingid == $id) {
+                        $select = ' selected="selected"';
+                    }
+                    echo "<option value=\"$id\"$select>$name</option>\n";
+                    $count++;
+                }
+            }
+
+            echo '</select>'."\n";
+        } //IF($groupid)
+
+        echo '<p class="fitem">'."\n";
+        echo '<label for="id_submit">&nbsp;</label>'."\n";
+        echo '<span class="f--element fsubmit">'."\n";
+        echo '<input type="submit" name="update" id="id_submit" value="' . $strbutton . '" />'."\n";
+        echo '<input type="submit" name="cancel" value="' . get_string('cancel', 'group') . '" />'."\n";
+        echo '</span>'."\n";
+        echo '</p>'."\n";
+
+    } //IF($delete)
+
+    echo '<span class="clearer">&nbsp;</span>'."\n";
+    echo '</div>';
+    echo '</form>'."\n";
 
-</form>
-<?php
     print_footer($course);
 }
 
diff --git a/group/index.php b/group/index.php
index b9b416bcfdb..d685c398bac 100644
--- a/group/index.php
+++ b/group/index.php
@@ -123,6 +123,9 @@ if ($success) {
             */
             redirect(groups_group_edit_url($courseid, null, $groupingid, false));
             break;
+        case 'showcreateorphangroupform':
+            redirect(groups_group_edit_url($courseid, null, null, false));
+            break;
         case 'addgroupstogroupingform':
             break;
         case 'updategroups': //Currently reloading.
@@ -154,8 +157,36 @@ if ($success) {
                  "-> $strgroups", '', '', true, '', user_login_string($course, $USER));
 
     $usehtmleditor = false;
-    //TODO: eventually we'll implement all buttons, meantime hide the ones we haven't finised.
-    $shownotdone  = false;
+    //TODO: eventually we'll implement all buttons, meantime hide the ones we haven't finished.
+    $shownotdone  = false; 
+    $disabled = 'disabled="disabled"';
+    
+    // Pre-disable buttons based on URL variables
+    if (isset($groupingid) && $groupingid > -1) {
+        $showeditgroupsettingsform_disabled = '';
+        $showeditgroupingsettingsform_disabled = '';
+        $deletegroup_disabled = '';
+        $deletegrouping_disabled = '';
+        $printerfriendly_disabled = '';
+        $showcreategroupform_disabled = '';
+    } else {
+        $showeditgroupsettingsform_disabled = $disabled; 
+        $showeditgroupingsettingsform_disabled = $disabled; 
+        $deletegroup_disabled = $disabled;
+        $deletegrouping_disabled = $disabled;
+        $printerfriendly_disabled = $disabled;
+        $showcreategroupform_disabled = $disabled;
+    }
+    
+    if (isset($groupid)) {
+        $showaddmembersform_disabled = '';
+        $showeditgroupsettingsform_disabled = ''; 
+        $deletegroup_disabled = '';
+    } else {
+        $deletegroup_disabled = $disabled;
+        $showeditgroupsettingsform_disabled = $disabled; 
+        $showaddmembersform_disabled = $disabled; 
+    }
     
     print_heading(format_string($course->shortname) .' '.$strgroups, 'center', 3);
     echo '<form id="groupeditform" action="index.php" method="post">'."\n";
@@ -201,29 +232,30 @@ if ($success) {
     }
     echo '</select>'."\n";
 
+    
     echo '<p><input type="submit" name="act_updategroups" id="updategroups" value="'
             . get_string('showgroupsingrouping', 'group') . '" /></p>'."\n";
-    echo '<p><input type="submit" name="act_showgroupingsettingsform" id="showeditgroupingsettingsform" value="'
+    echo '<p><input type="submit" ' . $showeditgroupingsettingsform_disabled . ' name="act_showgroupingsettingsform" id="showeditgroupingsettingsform" value="'
             . get_string('editgroupingsettings', 'group') . '" /></p>'."\n";
     
     if ($shownotdone) {
-        echo '<p><input type="submit" disabled="disabled" name="act_showgroupingpermsform" '
+        echo '<p><input type="submit" '.$disabled.' name="act_showgroupingpermsform" '
                 . 'id="showeditgroupingpermissionsform" value="'
                 . get_string('editgroupingpermissions', 'group') . '" /></p>'."\n";
     } 
     
-    echo '<p><input type="submit" name="act_deletegrouping" id="deletegrouping" value="'
+    echo '<p><input type="submit" ' . $deletegrouping_disabled . ' name="act_deletegrouping" id="deletegrouping" value="'
             . get_string('deletegrouping', 'group') . '" /></p>'."\n";
     echo '<p><input type="submit" name="act_showcreategroupingform" id="showcreategroupingform" value="'
             . get_string('creategrouping', 'group') . '" /></p>'."\n";
     
     if ($shownotdone) {
-    echo '<p><input type="submit" disabled="disabled" name="act_createautomaticgroupingform" '
+    echo '<p><input type="submit" '.$disabled.' name="act_createautomaticgroupingform" '
             . 'id="showcreateautomaticgroupingform" value="' 
             . get_string('createautomaticgrouping', 'group') . '" /></p>'."\n";
     }
     
-    echo '<p><input type="submit" name="act_printerfriendly" id="printerfriendly" value="'
+    echo '<p><input type="submit" ' . $printerfriendly_disabled . ' name="act_printerfriendly" id="printerfriendly" value="'
             . get_string('printerfriendly', 'group') . '" /></p>'."\n";
     echo "</td>\n<td>\n";
     echo '<p><label for="groups" id="groupslabel">' .get_string('groupsinselectedgrouping', 'group') . '</label></p>'."\n";
@@ -257,21 +289,24 @@ if ($success) {
     echo '</select>'."\n";
     echo '<p><input type="submit" name="act_updatemembers" id="updatemembers" value="'
             . get_string('showmembersforgroup', 'group') . '" /></p>'."\n";
-    echo '<p><input type="submit" name="act_showgroupsettingsform" id="showeditgroupsettingsform" value="'
+    echo '<p><input type="submit" '. $showeditgroupsettingsform_disabled . ' name="act_showgroupsettingsform" id="showeditgroupsettingsform" value="'
             . get_string('editgroupsettings', 'group') . '" /></p>'."\n";
-    echo '<p><input type="submit" name="act_deletegroup" onclick="onDeleteGroup()" id="deletegroup" value="'
+    echo '<p><input type="submit" '. $deletegroup_disabled . ' name="act_deletegroup" onclick="onDeleteGroup()" id="deletegroup" value="'
             . get_string('deleteselectedgroup', 'group') . '" /></p>'."\n";
     
     if ($shownotdone) {
-        echo '<p><input type="submit" disabled="disabled" name="act_removegroup" '
+        echo '<p><input type="submit" '.$disabled.' name="act_removegroup" '
                 . 'id="removegroup" value="' . get_string('removegroupfromselectedgrouping', 'group') . '" /></p>'."\n";
     }
     
-    echo '<p><input type="submit" name="act_showcreategroupform" id="showcreategroupform" value="'
+    echo '<p><input type="submit" ' . $showcreategroupform_disabled . ' name="act_showcreategroupform" id="showcreategroupform" value="'
             . get_string('creategroupinselectedgrouping', 'group') . '" /></p>'."\n";
-
+    
+    echo '<p><input type="submit" name="act_showcreateorphangroupform" id="showcreateorphangroupform" value="'
+            . get_string('createorphangroup', 'group') . '" /></p>'."\n";
+        
     if ($shownotdone) {
-        echo '<p><input type="submit" disabled="disabled" name="act_addgroupstogroupingform" '
+        echo '<p><input type="submit" '.$disabled.' name="act_addgroupstogroupingform" '
                 . 'id="showaddgroupstogroupingform" value="' . get_string('addgroupstogrouping', 'group') . '" /></p>'."\n";
     }
     
@@ -298,11 +333,11 @@ if ($success) {
     echo '</select>'."\n";
 
     if ($shownotdone) {
-        echo '<p><input type="submit" disabled="disabled" name="act_removemembers" '
+        echo '<p><input type="submit" '.$disabled.' name="act_removemembers" '
                 . 'id="removemembers" value="' . get_string('removeselectedusers', 'group') . '"/></p>'."\n";
     }
     
-    echo '<p><input type="submit" name="act_showaddmembersform" '
+    echo '<p><input type="submit" ' . $showaddmembersform_disabled . ' name="act_showaddmembersform" '
             . 'id="showaddmembersform" value="' . get_string('adduserstogroup', 'group'). '" /></p>'."\n";
     echo '</td>'."\n";
     echo '</tr>'."\n";
diff --git a/group/lib/clientlib.js b/group/lib/clientlib.js
index 447c74d0020..f7363342a78 100644
--- a/group/lib/clientlib.js
+++ b/group/lib/clientlib.js
@@ -79,6 +79,20 @@ UpdatableGroupsCombo.prototype.refreshGroups = function (groupingId) {
             selectEl.removeChild(selectEl.firstChild);
         }
     }
+    
+    if (groupingId > -1) {
+        document.getElementById("showaddmembersform").disabled = true;
+        document.getElementById("showeditgroupingsettingsform").disabled = false;
+        document.getElementById("deletegrouping").disabled = false;
+        document.getElementById("printerfriendly").disabled = false;
+        document.getElementById("showeditgroupsettingsform").disabled = true;
+        document.getElementById("deletegroup").disabled = true;
+        document.getElementById("showcreategroupform").disabled = false;
+    } else {
+        document.getElementById("showeditgroupingsettingsform").disabled = true;
+        document.getElementById("deletegrouping").disabled = true;
+        document.getElementById("showcreategroupform").disabled = true;
+    }
 
     var sUrl = this.wwwRoot+"/group/index.php?id="+this.courseId+"&grouping="+groupingId+"&act_ajax_getgroupsingrouping";
     YAHOO.util.Connect.asyncRequest('GET', sUrl, this.connectCallback, null);
@@ -127,6 +141,8 @@ function UpdatableMembersCombo(wwwRoot, courseId) {
 
 /**
  * When a group is selected, we need to update the members.
+ * The Add/Remove Users button also needs to be disabled/enabled
+ * depending on whether or not a group is selected
  */
 UpdatableMembersCombo.prototype.refreshMembers = function (groupId) {
     // Add the loader gif image.
@@ -139,7 +155,10 @@ UpdatableMembersCombo.prototype.refreshMembers = function (groupId) {
             selectEl.removeChild(selectEl.firstChild);
         }
     }
-
+    
+    document.getElementById("showaddmembersform").disabled = false;
+    document.getElementById("showeditgroupsettingsform").disabled = false;
+    document.getElementById("deletegroup").disabled = false;
     var sUrl = this.wwwRoot+"/group/index.php?id="+this.courseId+"&group="+groupId+"&act_ajax_getmembersingroup";
     YAHOO.util.Connect.asyncRequest("GET", sUrl, this.connectCallback, null);
 };
diff --git a/lang/en_utf8/group.php b/lang/en_utf8/group.php
index 80517a80e4a..05cc01c0074 100644
--- a/lang/en_utf8/group.php
+++ b/lang/en_utf8/group.php
@@ -67,6 +67,7 @@ $string['selectnumberofgroups'] = 'Select number of groups';
 $string['numberofgroups'] = 'Number of groups';
 $string['creategrouping'] = 'Create grouping';
 $string['creategroup'] = 'Create group';
+$string['createorphangroup'] = 'Create Orphan group';
 
 $string['groupname'] = 'Group name';
 $string['defaultgroupname'] = 'Group';
@@ -110,4 +111,4 @@ $string['groupsnone'] = 'No groups';
 $string['groupsseparate'] = 'Separate groups';
 $string['groupsvisible'] = 'Visible groups';
 
-?>
\ No newline at end of file
+?>