private bool IsMemberOf(string groupName)
{
    SPUser user = SPContext.Current.Web.CurrentUser;
    try
    {
        if (user.Groups[groupName] != null)
            return true;
        else
            return false;
    }
    catch
    {
        return false;
    }
}

The try-catch is required as – somewhat counter-intuitively – SharePoint seems to throw a “Group not found” error if the user is not a member of the group.