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While it seems feasible that this word is derived from the grooves on an LP record, what is the evidence? Is there evidence from the 50's and 60's of this being initially used to describe records and/or music and then metaphorically shifted to other things and people?

There is evidence that this is not the etymology. According to the use of groovy began in 1850 - 1855, antedating the hipsters of the mid 1900s by a century. JohnElder 18:51, 2 December 2006 (UTC)
okay, but I reverted your edit. We don't just remove information. So what is the etymology? Robert Ullmann 18:56, 2 December 2006 (UTC)
I'm still looking - but why on earth would you revert?!? Is it better to have incorrect information than to have nothing? If nothing is there, people will seek a source. If the wrong answer is there, they will assume they've found the right one. JohnElder 19:01, 2 December 2006 (UTC)
then we will say that the ety. is mis-construed as being from the LP grooves. By all means more information! (But you might, or might not, be surprised at the number of times people "blank" things that are supposedly nonsense, but are quite correct!) oh, and isn't at the level of un-reliability of "urban dictionary", but sometimes seems close! Robert Ullmann 19:11, 2 December 2006 (UTC)
  • The phrase is much earlier than LPs. I have split the definition and added an etymology from the OED. SemperBlotto 19:16, 2 December 2006 (UTC)

I have just heard a possible use of groovy in this 1944 song: