Agreed, I went to groovy.me, and didn't notice the third o until I saw the groovy.me site.
Does the domain dribbble.com also make you want to enter dribble.com at first glance?
http://thenextweb.com/2008/10/13/the-15-dumbest-names-for-we...
I agree with the comment above on the name, I think many will simply not see the third letter mid-word in both cases. It's probably something with visual perception where you see what you expect, not what is there (... maybe related to how folks miss their own typos ).