[xsl] Grouping problem

["james walker" <jameswalkerandy@xxxxxxxxxxx>]

Given:
<xsl:key name="ve-by-firstocc" match="viewentry" 
use="substring(entrydata[3]/text,1,1)" />
<xsl:template match="viewentries">

<xsl:for-each select="viewentry[count(. | key('ve-by-firstocc', 
substring(entrydata[3]/text,1,1))[1]) = 1]">
<xsl:sort select="substring(entrydata[3]/text,1,1)" data-type="text" 
order="ascending"/>
<xsl:value-of select="substring(entrydata[3]/text,1,1)"/>

  <xsl:for-each select="key('ve-by-firstocc', 
substring(entrydata[3]/text,1,1))">
   <xsl:sort select="entrydata[3]/text" data-type="text" 
order="ascending"/>
   <xsl:variable name="ThisDocURL" select="@unid"/>
      <xsl:value-of select="entrydata[3]/text" />
    </xsl:for-each>

</xsl:for-each>

The result i get is:

a
c
d
asking helpteam
allowingpermission
call 091
cannot secure
desire security
dont eat in the lab

instead of the desired output:
a
asking helpteam
allowingpermission
c
call091
cannot secure
d
desire security
dont eat in th elab

I am not sure where i am going wrong in teh for each statements, can anyone 
help?

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