Hide Offline group option
"Hide Offline Group" checkbox can be added in Contacts menu. This is needed when Grouping of offline contacts is disabled and offline contacts are showing in the groups they belong too. So there is no need to show Offline group in the bottom of the roster.
This was fixed by Niklas patch which introduced offline users hiding when offline contacts grouping is disabled
I think this problem is fixed...issue can be closed
It seems that the latest Niklas Schaefer changes in code (introducing "Show offline users") are solving this issue in other way. One can get rid of the Offline group now. This issue can be closed.