Yay! Another point. Found this one quite easy - but only because I happened to re-read Itzik Ben-Gan's Inside Microsoft SQL Server 2008: T-SQL Querying recently. (Chapter 1)

Itzik describes the logical order of processing as:

FROM

Cartesian Product

ON clause filter

Add Outer Rows

WHERE

GROUP BY

HAVING

SELECT

Evaluate expressions

DISTINCT

TOP

Presentation ORDER BY

I would just add that the physical order of operations performed may differ from the logical order due to query optimisation.

Well done Tom.

edit: added further details after re-reading the question explanation