Depends on your settings. If you deactivate online scrapping for audio it will use the local tags and covers only.
If you activate online scrapping it might use the newly downloaded data.
Hmmm. I just realised I have got "download nothing" selected for Audio, so now I am even more confused why I could not initially get the sorting and grouping to work.
No matter. So far MP2.2 is behaving like 2.1.3 did when I first installed it. It seems to be taking a few days but things are settling down, and I am liking the improvements, especially on the WMC skin