In common parlance, entropy has been associated with disorder, but that's not really the definition of entropy. The change of entropy in going from state A to state B is defined to be the heat absorbed by the system in a reversible process connecting the two states divided by the temperature at which the heat is absorbed. An increase in entropy is accompanied by an absorption of heat, a decrease is accompanied by a release of heat. Consider the sun and the surrounding space. The sun continually releases a large amount of heat, call it q, into the surrounding space. The sun's entropy decreases as a result by an amount equal to Q/6000K, since the surface temperature of the sun is 6000K. The surrounding space, at the same time, increases in entropy by an amount Q/3K. Therefore the overall entropy change as a result of this heat release is Q/3-Q/6000, which after some algebra is equal to 1999q/6000. Since Q is very large, this is an enormous increase in entropy. A similar analysis shows that the earth's absorption of solar energy from the surrounding space is accompanied by an entropy decrease equal to 93q/282, where q is the amount of heat that the earth absorbs from the surrounding space, a value typically much smaller than Q, the heat output of the sun. (I have assumed an average temperature for earth of ~50 F) Even in a worst case scenario, which would be assuming that the earth absorbs all the energy output of the sun (ie. Q=q), the overall process would result in an entropy increase of ~0.003Q, which would be a very large increase since Q is very large. In reality, the entropy increase is 1999Q/6000 - 320q/969, which is larger than the case where Q=q, since q is usually several orders of magnitude smaller than Q.
The practical upshot is that the absorption of solar radiation is a process that increases the entropy of the solar system to such a degree that it can be used to drive processes that would result in a decrease in entropy, such as evolution. That's why shubi is correct in saying that the sun makes entropy irrelevant on earth. To a good approximation, the solar system is an isolated system. Therefore, the total entropy of the solar system must increase, but the second law makes no requirement that all parts of the solar system must increase in entropy.
Another excellent explanation. It is refreshing to see so many science geeks on the side of rationality here.