Ok this is what I'm doing...
My last name is spelled with "liter."
Siri pronounces that like "a 2 liter of soda."
So I've added the phonetic last name field on the contact card to help her pronounce it like "lighter."
On my contact info,
First name: Bill
Last name: Hinderliter
Phonetic last name: Hinderlighter
If I delete the phonetic last name field... It sorts the contact perfectly.
If I add it, the contact is placed on top of all the "B's" in the list.
On a side note... I found another website with a temporary fix to this problem. The person there says to use the nickname field instead of phonetic field when getting Siri to pronounce things.
http://apple.stackexchange.com/questions/29210/how-do-i-get-siri-to-pronounce-my -name-correctly
Thanks again for your time.