I am working on a new blog’s design and markup right now and I have found a place where I’m tempted to nest two anchor tags within a single heading tag:
<h3><a>Popular<a/>|<a>Recent</a></h3>
Which looks like this:

(source: autochemky.com)
The purpose of doing this would (obviously) be to enable "POPULAR" as a link to display popular articles and "RECENT" a link to display recent articles. . . clicking one or the other would only change the visible content (article list) on the sidebar and not link to a new page (either via ajax or having them both already loaded and one being a hidden div).
Doing this is a measure to avoid additional potentially unnecessary code involving more than one h3 element or more than one visible list of articles.
I suppose my questions to go along with this are (in order of importance and assuming HTML5):
Is the markup valid/acceptable?
Would this have any realistic/noticeable effect on SEO?
Would you prefer to achieve the same result in a different way?
Assuming HTML5 – it’s acceptable, HTML5 introduced that any element can be inside an
<a>tag (pretty sure)Not a noticeable effect on SEO, it’s a minor detail, as minor as you probably should be using a
<h1>tag if that is the header of a section seeing as that is the base in the new HTML5 semantics.I’d stick to what you have there definitely.