In 12.04 with Empathy 126.96.36.199 I can't seem to find the options for adding, removing or even editing a group. Are there still there or moved where?
At first i also only found how to remove groups: You can right click on a group, the remove option shows up.
Now to add or edit a group, you need to right click on a contact, click on Edit. An 'Edit Contact Information' screen shows up. There you can add new groups and edit existing ones.