I think you are really mixing something up.
Order of the categories has nothing to do with sorting. There is only one way to determine the order of the categories. That is by drag-and-drop. By dragging and dropping you determined the category "*My Blogs" to be the first of the four categories.
That works perfectly as I can see on your screenshot, where you also show your blogroll. The category "*My Blogs" is the first one, followed by "Blogroll", "Pure Poker" and "Side Trips".
Reading your first posting of this thread, I understand that the order of the categories is exactly as you want it (correct me, if I am wrong).
Sort order (e.g. alphabetical) determines the order of the bookmarks within each category and not the order of the categories . As you chose to activate Javascript-sorting, alphabetical sorting is overridden by the date-based order of the bookmarks.
If you want the sort order of your bookmarks to be alphabetical within each category, disable Javascript-sorting.