=== modified file 'src/sp-item-group.cpp'
--- src/sp-item-group.cpp	2015-01-15 19:03:17 +0000
+++ src/sp-item-group.cpp	2015-02-11 00:15:26 +0000
@@ -399,6 +399,26 @@
     }
 }
 
+void sp_ungroup_recursive_cancel_double_transform(SPGroup *group/*current group*/,SPGroup *ascendant/*original parent*/, Geom::Affine const g){
+	//recursively left_compose g.inverse to decendants that are clones and clones of a descendant of the group
+    for (SPObject *child = group->firstChild() ; child; child = child->getNext() ) {
+        SPItem *citem = dynamic_cast<SPItem *>(child);
+        if (citem) {
+            SPUse *useitem = dynamic_cast<SPUse *>(citem);
+        	if(useitem && useitem->get_original()->nearestCommonAncestor(ascendant)==ascendant){
+                Geom::Affine ctrans;
+                ctrans=g.inverse() * citem->transform;
+                gchar *affinestr=sp_svg_transform_write(ctrans);
+                citem->setAttribute("transform", affinestr);
+                g_free(affinestr);
+        	}
+            SPGroup *groupitem = dynamic_cast<SPGroup *>(citem);
+            if(groupitem){
+            	sp_ungroup_recursive_cancel_double_transform(groupitem,ascendant,g);
+            }
+        }
+    }
+}
 
 void
 sp_item_group_ungroup (SPGroup *group, GSList **children, bool do_done)
@@ -435,6 +455,8 @@
     /* Step 1 - generate lists of children objects */
     GSList *items = NULL;
     GSList *objects = NULL;
+    Geom::Affine const g(group->transform);
+    sp_ungroup_recursive_cancel_double_transform(group, group,g);
     for (SPObject *child = group->firstChild() ; child; child = child->getNext() ) {
 
         SPItem *citem = dynamic_cast<SPItem *>(child);
@@ -472,13 +494,6 @@
 
             // Merging transform
             Geom::Affine ctrans;
-            Geom::Affine const g(group->transform);
-            SPUse *useitem = dynamic_cast<SPUse *>(citem);
-            if (useitem && useitem->get_original() &&
-                useitem->get_original()->parent == dynamic_cast<SPObject *>(group)) {
-                // make sure a clone's effective transform is the same as was under group
-                ctrans = g.inverse() * citem->transform * g;
-            } else {
                 // We should not apply the group's transformation to both a linked offset AND to its source
                 if (dynamic_cast<SPOffset *>(citem)) { // Do we have an offset at hand (whether it's dynamic or linked)?
                     SPItem *source = sp_offset_get_source(dynamic_cast<SPOffset *>(citem));
@@ -497,7 +512,6 @@
                 } else {
                     ctrans = citem->transform * g;
                 }
-            }
 
             // FIXME: constructing a transform that would fully preserve the appearance of a
             // textpath if it is ungrouped with its path seems to be impossible in general