How to sort terms with diacritical signs?

I have list of terms which happens to be the Polish Alphabet.

Here’s how I list these terms:

<ul>
<?php 
   $terms = get_terms("taxonomy", array('orderby' => 'title', 'hide_empty' => 0));
   foreach ( $terms as $term ) {
      echo "<li><a href="". get_term_link( $term->slug, $term->taxonomy ) ."">" . $term->name . "</a></li>";
   } ?>  

Everything works like a charm excepting one thing – the letter that is supposed to be after “L” (“Ł”) is always the last element o that list (so it’s after “Ż”, not “L”). Is there any way to fix it? I’ve been trying multiple WP versions including Polish builds.

Any ideas? I can always do two foreach loops for A-L and M-Ż and add that one between them, but would love to do that with more class.

You need to set the database collation to utf8_polish_ci in your wp-config.php to get correct sorting.