The below is from the left panel in my subsonic installation. You there see that uppercase characters is prioritized over lower case characters:
Spill Legg til Last ned A1
Spill Legg til Last ned ABBA
Spill Legg til Last ned ACDC
Spill Legg til Last ned Aaron Neville
Spill Legg til Last ned Aaron Neville
Spill Legg til Last ned Abba
Spill Legg til Last ned Abba
The list order should had been:
A1
Aaron Neville
Aaron Neville
ABBA
Abba
Abba
ACDC
I must say that I have several music folder locations, but I believe that to be unrelated.