Category order by Category Name doesnt work

[Makis77]

Even though I ve set under Configuration the "Default category sort order" as "Category Name" I still see parent categeries showing randomly.
If I re-order them manually from backend and click save then product module is updated BUT when I add a new parent category in the backend it gets a random order so I have to re-order it manually.

Is there a setting so that whenever I add a category or a parent category then it will save the alphabetical order as set in the Configuration settings.

I m using Joomla 2.5.8 and VM  2.0.20b