Hi Kyteflyer. In the current version, by grouping, I mean the author jump list feature (tap the "head" icon next to the sort button). Currently there is a jump list for the Author field. In the next version, there will be a jump list for the Author Sort field as well.
I'm sketching some ideas for better and finer library management including "true" grouping by authors. However, I don't think it will make it into the very next update - there are already about 15 major new features scheduled for that update. It will probably be in the next one.