First, do any of these folder names begin/end with or contain *any* numbers,
symbols or punctuation marks within the string of the alphabet letters A
through Z.

In other words if you have three folder names like
Abc
Abd
Bac
those three would stay in what people normally think of when we say
alphabetical order. But for example, if I create a new folder and name it
*Zbc added to the three folder examples earlier you would get them in
alphabetical order and the order would be:
*Zbc
Abc
Abd
Bac .
"By default, the newer sort order considers strings in file and folder names
as numeric content, not text. Numerals in folder and file names are sorted
according to their numeric value."
Learn more here [url]http://support.microsoft.com/kb/319827[/url]

That being said, the folder in question, rename it and type in the name, it
can be the same name you are using now, but rename it and see what happens.
(Refresh)
This is a quick guess, if of no help, as Richard Urban said give more info.
H Brown

"Zygy" <zygy@microsoft.com> wrote in message
news:uiyjUVt2JHA.1864@TK2MSFTNGP02.phx.gbl...[color=blue]
> On one of my computers a newly created Folder In my Documents does not
> find its correct space in alphabetical order when the name is inserted but
> stays at the bottom of the list of Folders in My Documents, requiring it
> to be placed in the correct place by hand incurring all the difficulties
> of merging Folders at the same time - all time consuming.
>
> Is there a way of correcting this? The Technical Assistance for HP Compaq
> failed to find a solution - maybe you readers are better equipped with the
> grey matter than they are?[/color]