Interesting. I will have to look at the Radix sort more in depth.
I was thinking of using a modified heap-sort, because that way if I want, I can only grab the top million or so lines. But I will have to look at this Radix sort, it might work really well.
again, thanks. I will let you know how it turns out, once I finish the script.

You might like to try this. It sorts an 80MB file in around 5 mins and consumes less than 10 MB of ram.

I will also handle sorting files up to the 4 GB filesystem limit using less than 50 MB of ram, though it will obviously run somewhat more slowly. Given more information about the form of the records, it would be possible to tailor the algorithm to speed the processing.

#! perl -slw
use strict;

open IN, '+<', $ARGV[0] or die $!;
my @splits;

my $pos = 0;
while( <IN> ) {
    $splits[ unpack 'n', substr( $_, 0, 2) ] .= 
          pack( 'V', $pos ) . substr $_, 2, 4;
    $pos = tell IN;
}

@splits = grep $_, @splits;

my $n;
for my $split ( @splits ) {
    $split = join'', map{ substr $_, 0, 4 } sort{
        my( $as, $at, $bs, $bt ) = ( unpack( 'VA4', $a ), unpack( 'VA4
+', $b ) );
        $at cmp $bt
        ||
        do{ seek IN, $as, 0; scalar <IN> }
        cmp
        do{ seek IN, $bs, 0; scalar <IN> }
    } unpack '(A8)*', $split;
}

for my $split ( @splits ) {
    printf do{ seek IN, $_, 0; scalar <IN> } for unpack 'V*', $split;
}
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