I have a table called groups as shown below :

After looking at the image above I think you might have understood that primary key and foreign key exist in the same table. I think this is what developers call cyclic reference.
In MainWindow.xaml I have a DataGrid which contains three columns namely Group Name, Parent Name, Description. The xaml looks like :
<Window .......>
    <Window.DataContext>
        <self:MainWindowViewModel />
    </Window.DataContext>
    <DataGrid ItemsSource="{Binding Groups}" TabIndex="1">
        <DataGrid.Columns>
            <DataGridTemplateColumn Header="Group Name" Width="2*">
                <DataGridTemplateColumn.CellTemplate>
                    <DataTemplate>
                        <TextBlock Text="{Binding GroupName}"/>
                    </DataTemplate>
                </DataGridTemplateColumn.CellTemplate>
                <DataGridTemplateColumn.CellEditingTemplate>
                    <DataTemplate>
                        <TextBox Text="{Binding GroupName}" />
                    </DataTemplate>
                </DataGridTemplateColumn.CellEditingTemplate>
            </DataGridTemplateColumn>
            <DataGridTemplateColumn Header="Parent" Width="2*">
                <DataGridTemplateColumn.CellTemplate>
                    <DataTemplate>
                        <TextBlock Text="{Binding ParentID}" />
                    </DataTemplate>
                </DataGridTemplateColumn.CellTemplate>
                <DataGridTemplateColumn.CellEditingTemplate>
                    <DataTemplate>
                        <ComboBox ItemsSource="{Binding DataContext.GroupsCollection, RelativeSource={RelativeSource Mode=FindAncestor, AncestorType={x:Type Window}}}"
                                  SelectedValue="{Binding ParentID}"
                                  DisplayMemberPath="GroupName"/>
                    </DataTemplate>
                </DataGridTemplateColumn.CellEditingTemplate>
            </DataGridTemplateColumn>
            <DataGridTemplateColumn Header="Description" Width="2*">
                <DataGridTemplateColumn.CellTemplate>
                    <DataTemplate>
                        <TextBlock Text="{Binding Description}"/>
                    </DataTemplate>
                </DataGridTemplateColumn.CellTemplate>
                <DataGridTemplateColumn.CellEditingTemplate>
                    <DataTemplate>
                        <TextBox Text="{Binding Description}"/>
                    </DataTemplate>
                </DataGridTemplateColumn.CellEditingTemplate>
            </DataGridTemplateColumn>
        </power:PowerDataGrid.Columns>
    </power:PowerDataGrid>
</Window>
Now I have a ViewModel called MainWindowViewModel
public class MainWindowViewModel : INotifyPropertyChanged
{
    public MainWindowViewModel()
    {
        SampleDBContext sampleDBContext = new SampleDBContext();
        Groups = new ObservableCollection<Group>();
        GroupsCollection = new ObservableCollection<Group>(from g in sampleDBContext.Groups select g);
    }
    private ObservableCollection<Group> _groups;
    public ObservableCollection<Group> Groups
    {
        get
        {
            return _groups;
        }
        set
        {
            _groups = value;
            OnPropertyChanged("Groups");
        }
    }
    private ObservableCollection<Group> _groupsCollection;
    public ObservableCollection<Group> GroupsCollection
    {
        get
        {
            return _groupsCollection;
        }
        set
        {
            _groupsCollection = value;
            OnPropertyChanged("GroupsCollection");
        }
    }
    #region INotifyPropertyChanged
    public event PropertyChangedEventHandler PropertyChanged;
    protected void OnPropertyChanged(string propertryName)
    {
        if (PropertyChanged != null)
        {
            PropertyChanged(this, new PropertyChangedEventArgs(propertryName));
        }
    }
    #endregion
}
Problems :
Output :

As you can see in the above image when I press TAB or Enter after selecting a group in Parent Column the next cell is focused but cell Under Parent Column has a red Outline indicating some error. Also cell does not leave edit mode. Also I get lot of binding errors in output window. So, I know that my binding is incorrect. Can somebody help me to bind Combobox inside a datagrid?
Update:
If I use the SelectedValuePath as below :
<ComboBox ItemsSource="{Binding DataContext.GroupsCollection, RelativeSource={RelativeSource Mode=FindAncestor, AncestorType={x:Type Window}}}"
          SelectedValue="{Binding ParentID}" SelectedValuePath="{Binding GroupID}"
          DisplayMemberPath="GroupName" />
Then the error goes away and cell also leaves edit mode. But then TextBlock(which is celltemplate) always remains empty.
