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Here is a faster and more reliable item sorter for Minecraft 1.5 and above. It's not the most resource friendly though. The least amount of items for each sort is:

4 Blocks to Build On
4 Hoppers = 20 iron / 4 chests
1 comparator = 3 redstone dust / 3 sticks / 1 nether quartz / 3 stone
1 repeater = 3 redstone dust / 2 sticks / 3 stone
1 redstone torch = 1 redstone dust / 1 stick
2 redstone dust
23 of an item/of a combination of items.

Original Video: http://www.youtube.com/watch?v=IryuBJjlR34

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<p>Still the best and easiest sorter to date. However, the high level chest is a bit of a pain. Much better if you use a simple self powered dropper riser to bring items up from a chest on the ground up to the hoppers. Can easily link multiple sorters too in to one big automated sorting system (as has been done in this world https://www.youtube.com/watch?v=qK9jPR5PNHE and as is being done in my new world).</p>
Looks nice :) let's see if I can do it too :) Thanks!
<p>Wow this seems pretty hard to create.</p>

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More by Aerophite:Playing With Command Blocks: Currency System For Vanilla Minecraft (1.6.2+) Redstone Distance Triggering in Minecraft 1.5 + Easy to Extend, Faster, Always Reliable Item Sorter Tutorial in Minecraft 1.5 + 
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