Solved artist list issue. The X940 is not compatible with both the Album Artist and Albumartist (aka Band) tags. I was using both and this was formerly not an issue with either my F700 or iPod Classic. However it breaks the alpha scrolling list on the X940 (and maybe other X-series units). I deleted the Albumartist tag, resynced, and scrolling problem is solved.
From a technical perspective it is not the use of 3rd party programs that causes issues directly, it's that 3rd party programs allow tagging variances outside Apple's spec. It's important to realize that hardware manufacturers and codecs implement tags a little differently; there isn't universal agreement on all tags despite the presence of industry standards for the most widely used codecs. ReplayGain vs. SoundCheck is a good example. Another is Apple's use of a Compilations tag that is not part of the mp3 standard. The lesson is that our Pioneer head units are Apple-centric and, as such, care should be used to comply with Apple's tagging conventions when using 3rd party programs. Obviously using iTunes is the easiest answer 