Cannot Find Groovy Home, Please Setup Groovy Facet Follow

I am running Intellij 8.1 (9732) with the JetGroovy plugin. (8.0)

I have a grails project that was working fine, and then after a restart I started seeing an error stating "Cannot Find Groovy Home" and "Please Setup Groovy Facet".  It seems to think that it does not have a path to Groovy.  I went through the UI for quite some time and could not find anyway to enter or update the path to groovy.  Then I tried editing the .ipr file, and that did not help.  Finally, I deleted all the preferences and caches for Intellij and restup the IDE.  Again, that did not fix the issue either.

So, how do I setup the Groovy Facet?  Or, what do I need to do to get this working again.

Thanks.