This patch requires multigroup to be added to CCK-2 prior to applying.
This adds the nested fieldgroup patch changes to multigroup for CCK-2

diff -Nurp ../cck.orig/modules/content_multigroup/content_multigroup.admin.inc ./modules/content_multigroup/content_multigroup.admin.inc
--- ../cck.orig/modules/content_multigroup/content_multigroup.admin.inc	2010-05-05 09:52:52.000000000 -0500
+++ ./modules/content_multigroup/content_multigroup.admin.inc	2010-05-05 09:57:07.000000000 -0500
@@ -46,6 +46,7 @@ function content_multigroup_field_overvi
   // See if we have fields moving into or out of a Multigroup.
   // Set any fields to use the new name here so they will get processed
   // correctly by the fieldgroup module when saved.
+  $group_rows = array();
   foreach ($form_values as $key => $values) {
     if ($values['parent'] == '_add_new_group') {
       $values['parent'] = $new_group_name;
@@ -56,6 +57,7 @@ function content_multigroup_field_overvi
       // Gather up info about all groups.
       $group_name = $form_values[$key]['group']['group_name'];
       $groups[$group_name] = $form_values[$key]['group'];
+      $group_rows[$group_name] = $group_name;
     }
     if (!empty($form[$key]['#row_type']) && $form[$key]['#row_type'] == 'field') {
       if ($values['prev_parent'] != $values['parent']) {
@@ -66,6 +68,18 @@ function content_multigroup_field_overvi
   }
 
   $rebuild = FALSE;
+
+  foreach ($groups as $key => $values) {
+    if (in_array($key, $group_rows)) {
+      if (!empty($groups[$key]['parent']) && $groups[$groups[$key]['parent']]['group_type'] == 'multigroup') {
+        $error_message = t('You cannot place any kind of group inside a multigroup. ' . $key . ' was moved back to where it started.');
+        form_set_value($form[$key]['weight'], $form[$key]['weight']['#default_value'], $form_state);
+        form_set_value($form[$key]['parent'], $form[$key]['parent']['#default_value'], $form_state);
+        drupal_set_message($error_message, 'error');
+      }
+    }
+  }
+
   foreach ($fields as $field_name => $field) {
     $new_group = $form_values[$field_name]['parent'];
     $old_group = $form_values[$field_name]['prev_parent'];
@@ -285,6 +299,10 @@ function content_multigroup_display_over
     return;
   }
 
+  $groups = array();
+  if (module_exists('fieldgroup')) {
+    $groups = fieldgroup_groups($type_name);
+  }
   $contexts = content_build_modes($contexts_selector);
 
   // Multigroups, extra values.
@@ -301,7 +319,7 @@ function content_multigroup_display_over
     'table-single' => t('Table - Single column'),
     'table-multiple' => t('Table - Multiple columns'),
   );
-  foreach (fieldgroup_groups($type_name) as $group_name => $group) {
+  foreach ($groups as $group_name => $group) {
     if ($group['group_type'] != 'multigroup') {
       continue;
     }
diff -Nurp ../cck.orig/modules/content_multigroup/content_multigroup.node_form.inc ./modules/content_multigroup/content_multigroup.node_form.inc
--- ../cck.orig/modules/content_multigroup/content_multigroup.node_form.inc	2010-05-05 09:52:52.000000000 -0500
+++ ./modules/content_multigroup/content_multigroup.node_form.inc	2010-05-05 09:57:07.000000000 -0500
@@ -110,10 +110,12 @@ function _content_multigroup_fieldgroup_
   if (!in_array('content_multigroup_node_form_pre_render', $form['#pre_render'])) {
     array_unshift($form['#pre_render'], 'content_multigroup_node_form_pre_render');
   }
-
+  $elements[$group_name] = array();
   foreach ($group_deltas as $delta) {
-    content_multigroup_group_form($form, $form_state, $group, $delta);
+    $element = content_multigroup_group_form($form, $form_state, $group, $delta);
+    $elements[$group_name] = array_merge($elements[$group_name], $element[$group_name]);
   }
+  $form[$group_name] = $elements[$group_name];
 
   // Unset the original group field values now that we've moved them.
   foreach (array_keys($group_fields) as $field_name) {
@@ -131,26 +133,39 @@ function _content_multigroup_fieldgroup_
  * Called in form_alter and by AHAH add more.
  */
 function content_multigroup_group_form(&$form, &$form_state, $group, $delta) {
+  module_load_include('inc', 'content', 'includes/content.node_form');
+  $element = array();
+  $type_name = $group['type_name'];
+  $content_type = content_types($type_name);
   $group_name = $group['group_name'];
-  if ($group['group_type'] != 'multigroup' || empty($form[$group_name]) || empty($form['#multigroups']) || empty($form['#multigroups'][$group_name])) {
+
+  if (!isset($form[$group_name])) {//nested AHAH, not initial build
+    $element[$group_name] = content_get_form_element($group_name, $type_name, $form, TRUE);
+  }
+  else {//initial build (via content_multigroup_fieldgroup_form) or non-nested AHAH
+    $element[$group_name] = $form[$group_name];
+  }
+  if (($group['group_type'] != 'multigroup')
+      || (!(empty($element[$group['group_name']]['#access'])) && $element[$group['group_name']]['#access'] != TRUE)
+      || empty($element[$group['group_name']])) {
     return;
   }
-  module_load_include('inc', 'content', 'includes/content.node_form');
 
-  $node = $form['#node'];
   $group_fields = $form['#multigroups'][$group_name];
+  $element[$group_name]['#fields'] = array_keys($group_fields);
+  $node = $form['#node'];
   $group_multiple = $group['settings']['multigroup']['multiple'];
 
   foreach ($group_fields as $field_name => $field) {
-    if (empty($form[$group_name][$delta])) {
-      $form[$group_name] += array($delta => array($field_name => array()));
+    if (empty($element[$group_name][$delta])) {
+      $element[$group_name] += array($delta => array($field_name => array()));
     }
     else {
-      $form[$group_name][$delta][$field_name] = array();
+      $element[$group_name][$delta][$field_name] = array();
     }
 
-    $item_count = (isset($form_state['item_count'][$group_name]) ? $form_state['item_count'][$group_name] : $form[$group_name]['#item_count']);
-    $form[$group_name][$delta]['_weight'] = array(
+    $item_count = (isset($form_state['item_count'][$group_name]) ? $form_state['item_count'][$group_name] : $element[$group_name]['#item_count']);
+    $element[$group_name][$delta]['_weight'] = array(
       '#type' => 'weight',
       '#delta' => $item_count, // this 'delta' is the 'weight' element's property
       '#default_value' => $delta,
@@ -160,7 +175,7 @@ function content_multigroup_group_form(&
     // Add a checkbox to allow users remove a single delta subgroup.
     // See content_set_empty() and theme_content_multigroup_node_form().
     if ($group_multiple == 1) {
-      $form[$group_name][$delta]['_remove'] = array(
+      $element[$group_name][$delta]['_remove'] = array(
         '#type' => 'checkbox',
         '#attributes' => array('class' => 'content-multiple-remove-checkbox'),
         '#default_value' => isset($form_state['multigroup_removed'][$group_name][$delta]) ? $form_state['multigroup_removed'][$group_name][$delta] : 0,
@@ -205,7 +220,7 @@ function content_multigroup_group_form(&
     if (content_handle('widget', 'multiple values', $field) == CONTENT_HANDLE_CORE) {
       $field_form = content_field_form($form, $form_state, $field, $delta);
       $value = array_key_exists($delta, $field_form[$field_name]) ? $delta : 0;
-      $form[$group_name][$delta][$field_name] = $field_form[$field_name][$value];
+      $element[$group_name][$delta][$field_name] = $field_form[$field_name][$value];
     }
     else {
       // When the form is submitted, get the element data from the form values.
@@ -230,13 +245,15 @@ function content_multigroup_group_form(&
       }
       $field_form[$field_name]['#element_validate'][] = 'content_multigroup_fix_multivalue_fields';
 
-      $form[$group_name][$delta][$field_name] = $field_form[$field_name];
+      $element[$group_name][$delta][$field_name] = $field_form[$field_name];
     }
-    $form[$group_name][$delta][$field_name]['#weight'] = $field['widget']['weight'];
+    $element[$group_name][$delta][$field_name]['#weight'] = $field['widget']['weight'];
   }
 
   // Reset the form '#node' back to its original value.
   $form['#node'] = $node;
+
+  return $element;
 }
 
 /**
@@ -767,14 +784,16 @@ function content_multigroup_add_more_js(
   // Build our new form element for the whole group, asking for one more element.
   $delta = max(array_keys($_POST[$group_name])) + 1;
   $form_state['item_count'] = array($group_name => count($_POST[$group_name]) + 1);
-  content_multigroup_group_form($form, $form_state, $group, $delta);
+  $form_element = content_multigroup_group_form($form, $form_state, $group, $delta);
 
   // Rebuild weight deltas to make sure they all are equally dimensioned.
-  foreach ($form[$group_name] as $key => $item) {
+  foreach ($form_element[$group_name] as $key => $item) {
     if (is_numeric($key) && isset($item['_weight']) && is_array($item['_weight'])) {
-      $form[$group_name][$key]['_weight']['#delta'] = $delta;
+      $form_element[$group_name][$key]['_weight']['#delta'] = $delta;
     }
   }
+  // Add the new element at the right place in the (original, unbuilt) form.
+  content_set_form_element($group_name, $content_type['type'], $form, $form_element[$group_name], TRUE);
 
   // Save the new definition of the form.
   $form_state['values'] = array();
@@ -791,7 +810,7 @@ function content_multigroup_add_more_js(
   $form = form_builder($_POST['form_id'], $form, $form_state);
 
   // Render the new output.
-  $group_form = $form[$group_name];
+  $group_form = content_get_form_element($group_name, $content_type['type'], $form, TRUE);
   // We add a div around the new content to receive the ahah effect.
   $group_form[$delta]['#prefix'] = '<div class="ahah-new-content">'. (isset($group_form[$delta]['#prefix']) ? $group_form[$delta]['#prefix'] : '');
   $group_form[$delta]['#suffix'] = (isset($group_form[$delta]['#suffix']) ? $group_form[$delta]['#suffix'] : '') .'</div>';