http://www.etymonline.com/index.php?term=groovy
groovy - 1853 in literal sense of “pertaining to a groove;” 1937, Amer.Eng., in slang sense of first-rate, excellent; from jazz slang phrase in the groove (1932) “performing well (without grandstanding)”. As teen slang for “wonderful,” it dates from 1944; popularized 1960s, out of currency by 1980. Related: Grooviness.
Well, here's a bonus word from another era:
far out
also far-out, 1887, "remote, distant;" from far + out. Slang sense of "excellent, wonderful," is from 1954, originally in jazz talk.
Also, in jazz talk..hmm..conspiracy?
http://www.etymonline.com/index.php?allowed_in_frame=0&search=far+out&searchmode=none
Wentworth and Flexner says c 1935.