I stumbled upon an updated package for Groovy thats works on my Apple TV2 4.2 Firmware. The following forum topic is where I found the package. As well as a direct download mirrored on my site.

http://forums.plexapp.com/index.php/topic/22489-groovy-app-for-apple-tv/

Download com.atv.groovy_0.4-5_iphoneos-arm.deb – [download id=”4″]