Although this an extremely old thread. This was why I found this site. The little extra info I am posting would have saved me a couple minutes.
A google search for sorting the xp pro start menu let me to this post.
You must right click an item in the All Programs list, to get the sort by name.
It does not make sense, because a right click on an object should affect that object, not it and it's sibling objects. I would have expected to right click in the open space, not actually on an item. But, it works when you right click an item, so that's what you need to do.
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