[Tickets #5970] Creating a nested group fails with the message "<groupname> was not created: Already exists."

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Ticket URL: http://bugs.horde.org/ticket/?id=5970
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 Ticket             | 5970
 Created By         | jon at spriggs.org.uk
 Summary            | Creating a nested group fails with the message "<groupname> was not
                    | created: Already exists."
 Queue              | Horde Groupware
 Version            | 1.1-RC1
 Type               | Bug
 State              | Unconfirmed
 Priority           | 1. Low
 Owners             | 
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jon at spriggs.org.uk (2007-12-06 06:58) wrote:

I've just installed Horde Groupware 1.1 RC1, and my first post-install
configuration step (after running setup.php) was to try and create the
following group structure

GROUPS
|
+- AllTeamMembers
|    |
|   +- TeamManagers
|
+- CustomerContacts
     |
    +- Customer1

Sadly, what I found was that when I tried to create either second level
group was that I got a message 

"<groupname>" was not created: Already exists.

Whatever group name is specified, you get the same message.