After iOS 5.1.1 my ipod doesn't list artists/albums in the correct order
This is a well known issue. There is a very long discussion going on on the Apple Support pages. As far as I can see, there are two solutions which proved to fix this issue.


Switching the iPhone languages seems to work in some cases. Switch to Japanese and back to English (or your own language) and this should do the trick according to some users.
However, I would advise you to memorize the navigation very well, since it's very hard to find your way back in Japanese :)
Another thing which seems to fix this is to this "new feature". When navigating to Settings > Music, there should be an option to toggle Group by Album Artist. Toggle it off and after a resync, the problem should be fixed.
And while you're in the menu, make sure you've turned off Shuffle as well.


I can't confirm neither of these solutions since I cannot reproduce this error. So I hope it helps you out.