QUOTE(kalmark @ Jun 10 2007, 09:33)

Offtopic and I'm not even sure how this stuff works internationally, but the Hungarian grammar rules say that a transliteration from Cyrillic should be written exactly as the pronounced word sounds (e.g.
Sosztakovics)
Also, in Hungarian
A and
Á are completely different letters, so it would be strange and illogical to group them together by default. Especially when it comes to things like
O,
Ó,
Ö and
Ő 
I had one native English speaker ask me why we need so many different Os...but these are not different Os but different letters. Also,
S,
Z,
SZ and
ZS are completely different and are considered single letters, even if they consist of two characters. In this case it would be logical for a Hungarian to group
S separately from
SZ, but I guess this would be strange and useless for an English speaker, for example.
Sorry, I'm too tired for proper linguistics

But I guess you get my point...

Interesting.
Not entirely off-topic, since it deals with fb2k components sorting patterns...
The Hungarian example you gave stresses the reason why ISO-9 was created - it is supranational.
It recommends a unique, biunivocal spelling instead of a phonetic transcription of a word from a different alphabet, which spells differently in Hungarian, German, French etc.
In most languages letters with diacriticals are not consider as different and dictionaries for instance ignore accents when sorting; take that with a grain of salt for I'm not familiar with East-European languages and less so with Hungarian (which not even Indo-European is).
In summa, with 0.2.2
sequential sorting is fixed
andit is possible to decide whether first letters with and without diacriticals should appear alone or together by means of a simple expression.