[coreutils-6.9] ls and sort bug: ls and sort fails to sort alphabetically with and without options

[Wilber Washbucket]

My distro is ClarkConnect Community Edition release 4.0 (kernel 2.6.9-42.cc).

I noticed that ls was failing to sort alphabetically so I grabbed the latest 
version of coreutils and compiled it to test it, which
failed as well:
~]# wget http://ftp.gnu.org/gnu/coreutils/coreutils-6.9.tar.gz
~]# tar xvfz coreutils-6.9.tar.gz
~]# cd coreutils-6.9
coreutils-6.9]# ./configure
coreutils-6.9]# make
coreutils-6.9]# ldd src/ls
        librt.so.1 => /lib/tls/librt.so.1 (0x00111000)
        libc.so.6 => /lib/tls/libc.so.6 (0x00428000)
        libpthread.so.0 => /lib/tls/libpthread.so.0 (0x00bda000)
        /lib/ld-linux.so.2 (0x00bf2000)
coreutils-6.9]# src/ls -1 /var/arpwatch/
arp2ethers
arp.dat
arp-eth1.dat
arpfetch
arp-wlan0.dat
d.awk
duplicates.awk
e.awk
ethercodes.dat
euppertolower.awk
massagevendor
massagevendor-old
missingcodes.txt
p.awk


The same order in the output is produced by -alh(I'd imagine other options as 
well) as well as no options. -r produces the same
order except reversed.


The unsorted section is the arp* block:
arp2ethers
arp.dat
arp-eth1.dat
arpfetch
arp-wlan0.dat


Next I tried to pipe that through sort to see if it would come out sorted:
coreutils-6.9]# src/ls -1 /var/arpwatch/ | grep arp | src/sort
arp2ethers
arp.dat
arp-eth1.dat
arpfetch
arp-wlan0.dat


I also tried passing various values to sort like -dfgin(not at the same time) 
and this had no effect on the sort order, each option
looked like the output above.

I would have expected the output to look like this:
arp-eth1.dat
arp-wlan0.dat
arp.dat
arp2ethers
arpfetch

or something similar, not the output I am currently getting.

Hooroo,
Wilber