Windows 7: Sort broken, ignores hyphen

Windows 7 ultimate, SP1.

I was renaming folders today and saw an odd behavior. In a sort by filename, the system ignores the hyphen in names. It's easy to reproduce.

Create folder "st-ds"
Create folder "st-vo"
Create folder "strange"

The system puts the "strange" folder right in the middle.

But it shouldn't. There is no alphabetizing method that ignores the hyphen in names. The folder "strange" should be either first or last, but never in the middle. It's broken for both folders and files. Clearly it's a bug in the shell.

And here's proof that it's a shell problem. It works fine in command line.

In command prompt do a simple "dir". The "strange" folder is at the end, as it should be.

How do I submit a bug report?