AutoComplete speed

AutoComplete speed

Hi,  I have been using jQuery specifically AutoComplete however I need some advice as at times it is a bit slow:

1. The autocomplete process calls a php file and returns Towns/Counties(States) as the user types.

2. This PHP file then calls another php file relating to the correct Alphabetic (starting) character of the word (eg: A calls AClass, B calls BClass etc.)

3.  The data in each class is in an array relating to the first two letters of the Town/County (eg: A has a number of Arrays for Town/Counties AB, AC, AD etc. Plus an initial default Array for the first 150 Towns/Cities starting with A. This ensures something is returned if only A is typed)

4. Code in each class checks the correct array and returns upto 150 entries if Towns/Counties exist with names starting with the Typed characters.

5. However despite this the Autocomplete process still gets confused, mainly on IE8 and Vista (rarely on Firefox and/or XP IE7). 

6. For example I type London and though I only want a list with Towns/Counties starting with London I instead get the initial list starting L so incorrectly I may see Liverpool, etc...

7. I assume that this is because as each character is typed a call is made to the server, so

(i) I Type L and a call is made to get ALL L's
(ii) I Type Lo and a calll is made to get ALL Towns/Cities starting Lo etc...

I see the ALL L's list because the load speed is a bit slow and means though I have quickly typed London the ALL L's have only just been loaded into the browser window.

Can anyone advise either how I can speed up the processes by for example optimization or suggest better alternatives.

Thanks in advance for your help.

Regards

Andrew