Not far off for 4.2.0. I've just come to need this mod again, and I needed the sorting to work so took a look into it.
As benz says in the first bit of code I posted change
Code:
$a =func_get_categories_list("", true, "all");
to
Code:
$a =func_get_categories_list("", true, "sub_orderby");
Then you need to add the bit from benz's last post but it's not on line 68 of categories.php anymore it's now on line 533ish of /include/func/func.category.php
Add the two lines of code and it seems to work perfectly.
Hope this helps someone