diff --git a/mod_pbxproj.py b/mod_pbxproj.py
index e4ce3963..27176dba 100644
--- a/mod_pbxproj.py
+++ b/mod_pbxproj.py
@@ -30,7 +30,7 @@
 import site
 
 __author__ = 'kronenthaler'
-__version__ = '2.0.0'
+__version__ = '2.0.1'
 __package_name__ = 'mod_pbxproj_installer'
 
 try:
diff --git a/pbxproj/__init__.py b/pbxproj/__init__.py
index d5220067..b01bee2f 100644
--- a/pbxproj/__init__.py
+++ b/pbxproj/__init__.py
@@ -27,4 +27,4 @@
 from pbxproj.XcodeProject import XcodeProject
 from pbxproj.pbxsections import *
 
-__version__ = '2.0.0'
+__version__ = '2.0.1'
diff --git a/pbxproj/pbxextensions/ProjectGroups.py b/pbxproj/pbxextensions/ProjectGroups.py
index 17ff6cc8..241009a9 100644
--- a/pbxproj/pbxextensions/ProjectGroups.py
+++ b/pbxproj/pbxextensions/ProjectGroups.py
@@ -43,10 +43,23 @@ def remove_group_by_id(self, group_id, recursive=True):
         if group is None:
             return False
 
-        # error removing the element or any of its children
-        if not group.remove(recursive):
+        result = True
+        # iterate over the children and determine if they are file/group and call the right method.
+        for subgroup_id in list(group.children):
+            subgroup = self.objects[subgroup_id]
+            if subgroup is None:
+                return False
+
+            if recursive and isinstance(subgroup, PBXGroup):
+                result &= self.remove_group_by_id(subgroup.get_id(), recursive)
+            if isinstance(subgroup, PBXFileReference):
+                result &= self.remove_file_by_id(subgroup.get_id())
+
+        if not result:
             return False
 
+        del self.objects[group.get_id()]
+
         # remove the reference from any other group object that could be containing it.
         for other_group in self.objects.get_objects_in_section(u'PBXGroup'):
             other_group.remove_child(group)
diff --git a/pbxproj/pbxsections/PBXFileReference.py b/pbxproj/pbxsections/PBXFileReference.py
index 7e51961a..2af4fc27 100644
--- a/pbxproj/pbxsections/PBXFileReference.py
+++ b/pbxproj/pbxsections/PBXFileReference.py
@@ -26,5 +26,11 @@ def set_last_known_file_type(self, file_type):
     def _print_object(self, indentation_depth=u'', entry_separator=u'\n', object_start=u'\n',
                       indentation_increment=u'\t'):
         return super(PBXFileReference, self)._print_object(u'', entry_separator=u' ', object_start=u'',
-                                                     indentation_increment=u'')
+                                                           indentation_increment=u'')
+
+    def remove(self, recursive=True):
+        # search on the BuildFiles if there is a build file to be removed, and remove it
+        # search for each phase that has a reference to the build file and remove it from it.
+        # remove the file reference from it's parent
+        pass
 
diff --git a/setup.py b/setup.py
index 843212c8..e837e694 100755
--- a/setup.py
+++ b/setup.py
@@ -45,7 +45,7 @@ def run_tests(self):
         ]
       },
       url="http://github.com/kronenthaler/mod-pbxproj",
-      version='2.0.0',
+      version='2.0.1',
       license='MIT License',
       install_requires=['openstep_parser', 'docopt'],
       packages=find_packages(exclude=['tests']),
diff --git a/tests/pbxextensions/TestProjectGroups.py b/tests/pbxextensions/TestProjectGroups.py
index 63292e97..314db67e 100644
--- a/tests/pbxextensions/TestProjectGroups.py
+++ b/tests/pbxextensions/TestProjectGroups.py
@@ -21,6 +21,9 @@ def setUp(self):
                 '6p': {'isa': 'PBXGroup', 'name': 'app', 'path': '..', 'children': []},
                 'broken': {'isa': 'PBXGroup', 'name': 'broken', 'path': '..', 'children': ['broken1']},
                 'broken1': {'isa': 'PBXGroup', 'name': 'b1', 'path': '..', 'children': ['broken2']},
+                'a': {'isa': 'PBXGroup', 'name': 'app', 'path': '..', 'children': ['b']},
+                'b': {'isa': 'PBXGroup', 'name': 'app', 'path': '..', 'children': ['c']},
+                'c': {'isa': 'PBXFileReference', 'name': 'app'},
             }
         }
 
@@ -140,6 +143,16 @@ def testRemoveByNameNonRecursive(self):
         self.assertIsNotNone(project.objects['2p'])
         self.assertIsNotNone(project.objects['3p'])
 
+    def testRemoveByIdRecursivelyWithFiles(self):
+        project = XcodeProject(self.obj)
+        group1 = project.objects['a']
+        result = project.remove_group_by_id('a')
+
+        self.assertTrue(result)
+        self.assertIsNone(project.objects['a'])
+        self.assertIsNone(project.objects['b'])
+        self.assertIsNone(project.objects['c'])
+
     def testRemoveBrokenGroups(self):
         project = XcodeProject(self.obj)
         result = project.remove_group_by_id('broken')