I am sorry you are having problems.
The Groupy bar shows when you mouse over because you have the option to do that for ungrouped windows enabled. It is on the main Groupy config page.
Groupy 1 is not getting further updates.
The more information you can give us on your issues, the more chance of us resolving them for you.
If you are not aware there is a 2.1 beta update available already.