Perfect.  Thanks.  Just out of curiosity, is this possible
(practical?) in XSLT 1.0?

t:\>type grover.xml
<booklist>
  <author>
     <name file-as="Adams, Douglas">Douglas Adams</name>
  </author>
  <author>
     <name file-as="Anderson, Kevin J.">Kevin J. Anderson</name>
  </author>
  <author>
     <name file-as="Anthony, Piers">Piers Anthony</name>
  </author>
  <author>
     <name file-as="Archer, Jeffrey">Jeffrey Archer</name>
  </author>
  <author>
     <name file-as="Baldacci, David">David Baldacci</name>
  </author>
  <author>
     <name file-as="Ball, Margaret">Margaret Ball</name>
  </author>
  <author>
     <name file-as="Bradley, Marion Zimmer">Marion Zimmer Bradley</name>
  </author>
  <author>
     <name file-as="Carcaterra, Lorenzo">Lorenzo Carcaterra</name>
  </author>
  <author>
     <name file-as="Card, Orson Scott">Orson Scott Card</name>
  </author>
  <author>
     <name file-as="Chalker, Jack L.">Jack L. Chalker</name>
  </author>
  <author>
     <name file-as="Dahl, Roald">Roald Dahl</name>
  </author>
  <author>
     <name file-as="Daley, Brian">Brian Daley</name>
  </author>
  <author>
     <name file-as="Dann, Jack">Jack Dann</name>
  </author>
</booklist>

t:\>type grover.xsl
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="1.0">
  <xsl:output method="text"/>

  <xsl:key name="alet" match="author"
           use="substring(name/@file-as,1,1)"/>

  <xsl:template match="/">
   <xsl:for-each select="*/author[generate-id(.)=
                    generate-id(key('alet',substring(name/@file-as,1,1))[1])]">
     <xsl:text>&#xA;&#xA;</xsl:text>
     <xsl:value-of select="substring(name/@file-as,1,1)"/>
     <xsl:text>&#xA;</xsl:text>

     <xsl:for-each select="key('alet',substring(name/@file-as,1,1))">
       <xsl:value-of select="name/@file-as"/>
       <xsl:text>&#xA;</xsl:text>
     </xsl:for-each>
   </xsl:for-each>
 </xsl:template>
</xsl:stylesheet>

A
Adams, Douglas
Anderson, Kevin J.
Anthony, Piers
Archer, Jeffrey

B
Baldacci, David
Ball, Margaret
Bradley, Marion Zimmer

C
Carcaterra, Lorenzo
Card, Orson Scott
Chalker, Jack L.

D
Dahl, Roald
Daley, Brian
Dann, Jack

--
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