I don't think this is a problem with ubuntu, but a limitation with the FAT32 filesystem, since it's a case insensitive filesystem.
Sources: http://en.wikipedia.org/wiki/Comparison_of_file_systems http://en.wikipedia.org/wiki/Case-sensitive
That page also lists that FAT32 is a partial case preserving filesystem, so it isn't a fully case preserving file system.
I can confirm that this behaviour occurs on 9.04.
I don't think this is a problem with ubuntu, but a limitation with the FAT32 filesystem, since it's a case insensitive filesystem.
Sources: en.wikipedia. org/wiki/ Comparison_ of_file_ systems en.wikipedia. org/wiki/ Case-sensitive
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That page also lists that FAT32 is a partial case preserving filesystem, so it isn't a fully case preserving file system.
I can confirm that this behaviour occurs on 9.04.