Sort albums in iPhoto with hidden menu.
An article in MacLife points out this easy method:
"Although iPhoto wont sort albums for you automatically, a hidden feature in iPhoto 08 makes it easier for you to alphabetize them manually. Just right-click (or Control-click) one of your album names in iPhoto, and choose Sort Albums from the contextual menu that appears. iPhoto will simultaneously alphabetize your smart albums as a group and alphabetize your regular albums as a separate group."
This is slick and very, very easy. It also works in iPhoto '09, and I sure wish I had known this before!