To reproduce the problem follow the steps below:
1. Align two objects "to each other" so that the objects are one within the other.
2. Group these two objects.
3. Put them in the library.
4. Create two new objects and align them "to each other" so that the objects are one within the other.
5. Group these two new objects.
6. At this point the computer will crash.
This failure has been corrected in MacDraw II 1.1.