I have been using Groovy for a few months now and find that it addresses a lot of the things that have been bothering me about Java for a number of years (handling collections, null pointers, verbosity). The principal is that you should be able to take your Java source file, rename it to .groovy and start converting gradually ... that isn't quite true because Groovy doesn't support inner classes, for loops with multiple loop variables, do..while, and character literals, but these are easy to fix.
Scala is the statically-typed alternative ... Bill Venners reckons it allows you to achieve the same as Java (with compile-time checking) in about half the number of lines of code. And Scala has the LIFT framework, which is less mature than Grails but still promising.
Both Groovy and Scala are worth exploring, and will (eventually) make you more productive.