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It looks like the culprit is in the file XoopsTree.php. Take a look at the function makeMySelBox(). It uses the $order parameter to query the database for the root items but doesn't pass on the $order param to the getChildTreeArray() function.
So to fix it change the line ~170
from:
$arr = $this->getChildTreeArray($catid);
to:
$arr = $this->getChildTreeArray($catid, $order);
and it works nicely.
I'll also post this in the Bug Report forum.
Venezia