The groups aren't broken. It seems to me that your referencing to the imager might need some adjusting, as your external variables need to point towards the imager in order to display them inside the SWF. Ensure the variable "group.badge.url" contains the valid path to your imager:
Code:
group.badge.url=http://your-domain/habbo-imaging/badge/%imagerdata%.gif

Mine is working with the habbo-imaging directory MrPudding provided. Clearing your cache will also be a good idea if you have not done so already.
If you think your imager is the problem, try view the following page on your host:
Code:
http://your-domain/habbo-imaging/badge/b11823s172094s148093s146104s145094.gif
If you are able to view this badge (it's the one displayed in the image) then the issue does not reside with the imager.