"ORDER BY" issue - is this a bug?

Greetings,

I've been using postgresql for some time and currently am using it in three
different environments (specific details below) w/ the first two being 6.5.x
releases and the third 7.0.2-2:

I've come across what I consider an odd sorting anomaly in 7.0.2-2 where running
the following query:
select headline from headlines where headline like 'Alb%' order by 1 ;

The results in the 7.0.2-2 install come back case-insensitive and oblivious to
punctuation. This seems to me to be a bug; case-insensitive ordering can be
achieved with the use of UPPER() or LOWER() functions, otherwise why have the
functions. Also, I've created three test databases on the 7.0.2-2 system each
with a different specified encoding -
List of databases
Database | Owner | Encoding
------------+----------+-----------
headlines | deckard | WIN
headlines2 | deckard | SQL_ASCII
headlines3 | deckard | LATIN1

to see if the results are different. Each of the encodings produces the same
anomalous results.

Any help in this regard as well as resolving it would be appreciated. Details
of systems and schema are appended below.

--
Max Pyziur BRAMA - Gateway Ukraine
pyz(at)brama(dot)com http://www.brama.com/

The Details:

On the first two systems the results are as follows:
headline
-------------------------------------------------------------
Albright Arrives in Ukraine to Boost Reforms
Albright Calls on Ukraine to Announce Chernobyl Closure
Albright Calls on Ukraine to Speed up Military Reforms
Albright Hopeful on Chernobyl Cover
Albright Meets Ukraine Officials
Albright Reschedules Ukraine Visit
Albright Throws Weight Behind Ukraine's Kuchma
Albright To Hold Talks in Ukraine
Albright plans to show support for reform in visit to Ukraine
Albright plans to show support for reform in visit to Ukraine
Albright rushes to kyiv ahead of putin
Albright says U.S. still backs Kuchma
Albright to perform balancing act in Central Asia
Albright, in Kiev, Hails Russian START-2 Vote
(14 rows)
#####################################################################

On the 7.0.2-2 system it is:
headline
---------------------------------------------------------------
Albright Arrives in Ukraine to Boost Reforms
Albright Calls on Ukraine to Announce Chernobyl Closure
Albright Calls on Ukraine to Speed up Military Reforms
Albright Hopeful on Chernobyl Cover
Albright, in Kiev, Hails Russian START-2 Vote
Albright Meets Ukraine Officials
Albright plans to show support for reform in visit to Ukraine
Albright plans to show support for reform in visit to Ukraine
Albright Reschedules Ukraine Visit
Albright rushes to kyiv ahead of putin
Albright says U.S. still backs Kuchma
Albright Throws Weight Behind Ukraine's Kuchma
Albright To Hold Talks in Ukraine
Albright to perform balancing act in Central Asia
(14 rows)
#####################################################################

1 - Production - Solaris 2.6 running Postgresql 6.5.2 on a small Sparc 2
compiled from source
2 - Development - RH5.2 Linux 2.0.36 running Postgresql 6.5.3 installed from
rpms
3 - Development - RH6.2 Linux 2.2.14-5.0smp running Postgresql 7.0.2-2 installed
from stock rpms

Database table schema:
headlines=> \d headlines
Table = headlines
+----------------------------------+----------------------------------+-------+
| Field | Type | Length|
+----------------------------------+----------------------------------+-------+
| headline_id | int4 not null default nextval ( | 4 |
| headline | text | var |
| url | text | var |
| postdate | date | 4 |
| source | text | var |
| flags | text | var |
| posttime | timestamp | 4 |
+----------------------------------+----------------------------------+-------+
Indices: headlines_headline_id_key
hl_pdate
hl_s_pd
hl_srce

--
Max Pyziur BRAMA - Gateway Ukraine
pyz(at)brama(dot)com http://www.brama.com/