diff --git a/rhodecode/model/forms.py b/rhodecode/model/forms.py
--- a/rhodecode/model/forms.py
+++ b/rhodecode/model/forms.py
@@ -32,6 +32,7 @@ from formencode.validators import Unicod
 from pylons.i18n.translation import _
 from webhelpers.pylonslib.secure_form import authentication_token
 
+from rhodecode.config.routing import ADMIN_PREFIX
 from rhodecode.lib.utils import repo_name_slug
 from rhodecode.lib.auth import authenticate, get_crypt_password
 from rhodecode.lib.exceptions import LdapImportError
@@ -70,8 +71,7 @@ def ValidUsername(edit, old_data):
                 old_un = UserModel().get(old_data.get('user_id')).username
 
             if old_un != value or not edit:
-                if UserModel().get_by_username(value, cache=False,
-                                               case_insensitive=True):
+                if User.get_by_username(value, case_insensitive=True):
                     raise formencode.Invalid(_('This username already '
                                                'exists') , value, state)
 
@@ -122,7 +122,7 @@ def ValidReposGroup(edit, old_data):
         def validate_python(self, value, state):
             #TODO WRITE VALIDATIONS
             group_name = value.get('group_name')
-            group_parent_id = int(value.get('group_parent_id') or - 1)
+            group_parent_id = int(value.get('group_parent_id') or -1)
 
             # slugify repo group just in case :)
             slug = repo_name_slug(group_name)
@@ -206,7 +206,7 @@ class ValidAuth(formencode.validators.Fa
     def validate_python(self, value, state):
         password = value['password']
         username = value['username']
-        user = UserModel().get_by_username(username)
+        user = User.get_by_username(username)
 
         if authenticate(username, password):
             return value
@@ -241,7 +241,7 @@ def ValidRepoName(edit, old_data):
             repo_name = value.get('repo_name')
 
             slug = repo_name_slug(repo_name)
-            if slug in ['_admin', '']:
+            if slug in [ADMIN_PREFIX, '']:
                 e_dict = {'repo_name': _('This repository name is disallowed')}
                 raise formencode.Invalid('', value, state, error_dict=e_dict)
 
@@ -250,7 +250,7 @@ def ValidRepoName(edit, old_data):
                 gr = Group.get(value.get('repo_group'))
                 group_path = gr.full_path
                 # value needs to be aware of group name in order to check
-                # db key This is an actuall just the name to store in the
+                # db key This is an actual just the name to store in the
                 # database
                 repo_name_full = group_path + Group.url_sep() + repo_name
             else:
@@ -259,25 +259,32 @@ def ValidRepoName(edit, old_data):
 
 
             value['repo_name_full'] = repo_name_full
-            if old_data.get('repo_name') != repo_name_full or not edit:
+            rename = old_data.get('repo_name') != repo_name_full
+            create = not edit
+            if  rename or create:
 
                 if group_path != '':
                     if RepoModel().get_by_repo_name(repo_name_full,):
                         e_dict = {'repo_name':_('This repository already '
-                                                'exists in group "%s"') %
+                                                'exists in a group "%s"') %
                                   gr.group_name}
                         raise formencode.Invalid('', value, state,
                                                  error_dict=e_dict)
+                elif Group.get_by_group_name(repo_name_full):
+                        e_dict = {'repo_name':_('There is a group with this'
+                                                ' name already "%s"') %
+                                  repo_name_full}
+                        raise formencode.Invalid('', value, state,
+                                                 error_dict=e_dict)
 
-                else:
-                    if RepoModel().get_by_repo_name(repo_name_full):
+                elif RepoModel().get_by_repo_name(repo_name_full):
                         e_dict = {'repo_name':_('This repository '
                                                 'already exists')}
                         raise formencode.Invalid('', value, state,
                                                  error_dict=e_dict)
+
             return value
 
-
     return _ValidRepoName
 
 def ValidForkName():
@@ -287,7 +294,7 @@ def ValidForkName():
             repo_name = value.get('fork_name')
 
             slug = repo_name_slug(repo_name)
-            if slug in ['_admin', '']:
+            if slug in [ADMIN_PREFIX, '']:
                 e_dict = {'repo_name': _('This repository name is disallowed')}
                 raise formencode.Invalid('', value, state, error_dict=e_dict)