Comment 2 for bug 892694

> If I have a translate operation on a subgroup as in the attached
> figure, then the grid appears to be correct.>

I think your example shows a second bug (selecting a shape with a preserved transform). IMHO the position of both grids in your example is wrong: it should be placed on top of the bbox of the ellipse.

Attaching an example with simple rectangles inside a group.

(report was filed based on a recent discussion in the InkscapeForum:
<http://www.inkscapeforum.com/viewtopic.php?f=5&t=10703>)