Create sub-objects within wizard

Question

Question:
In a 'Create new' wizard, what is a good way to create sub-object?

I will have a wizard to create an object, Item.
An Item will always belong to another object, Group.
A Group will in itself belong to yet another object, Container.

The Group and Container are simple objects with just a Name and Description. But the Item is the main object and is more complex. It will probably require multiple Wizard pages.

Now I need to create a wizard to create this item, including a Group if not using one already existing. Example screenshot:

These are the alternatives that I've been considering. None of them seem desirable to me.

Alternative 1:
Instead of the "Create new group" option in the drop-down, add a link to open a "Create new Group" dialog popup window on top of the wizard.
This dialog would in itself have a "Create new Container" link that would pop up a "Create new Container" dialog on top.

Alternative 2:
Like the screenshot, creating a new Group will simply be a choice in a drop-down. Making this choice will take you to Step 2 of the wizard once you click Next step, otherwise skipping directly to Step 4.
The same method is used in Step 2 where you select container.

Alternative 3:
If selecting Create new group in the drop-down, new option will appear below with a slide animation, containing Group name, Group desc, and Group container. If Create new container is selected, yet another slide animation will reveal Container name and Container desc.

Answer 1

I myself like a pop-up in this situation.

Leads to this pop-up...

Note, I place "Create new group" lastly in dropdown list. Now the trick is to add yet another pop-up for the New Container. It should be no problem to have the three panels open at once.
You could use an expanding pop-up to reduce clutter.

Expands to...

Good luck!