There are reeferences to that group it the edu_department_info table that need to be deleted _before_ deleting the group in the user_groups table.
It's hard to foresee all the possibilites of deletes during the porting process. In Oracle this is easier because they have on delete cascade.
In a simple way: Scroll your mouse over the group you're thying to delete and notice (through the URL) what is the group_id number (I'll call it x). Then open a terminal and as your AOLserver user (usually nsadmin) run psql and from there:
delete from edu_department_info where group_id=x;
delete from user_groups where group_id=x;
If there are other referential integrity violations, you'll have to delete those too. Please add this bug to the SDM at openacs.org/sdm.