In example 2, couldn't this be used also?

DECLARE @orderby int

SET @orderby = 1

SELECT l.State, ComponentName

FROM #Locations l

INNER JOIN #Users u ON l.LocationID = u.LocationID

INNER JOIN #Components c ON c.UserID = u.UserID

GROUP By l.State, ComponentName

ORDER BY CASE @orderby

             WHEN 1 THEN l.State

             WHEN 2 THEN ComponentName

             END

I do like the changing of the order by with a variable.  Definitely a nice little trick.

Pat