What Microsoft has to say about NTFS and changing case sensitivity.
Looks like you do not have to change the kernel to allow case sensitive lookups on the network.
http://technet.microsoft.com/en-us/library/cc783185(WS.10).aspx
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Configuring case sensitivity for file and folder names
Applies To: Windows Server 2003 R2
To configure case sensitivity for file and folder names using the Windows interface
Open Microsoft Services for Network File System: click Start, point to Programs, point to Administrative Tools, and then click Microsoft Services for Network File System.
If necessary, connect to the computer you want to manage.
Right-click Server for NFS, and then click Properties.
Click the Filename Handling tab.
Do one of the following:
To enable case-sensitive file and directory name lookups, select the Enable case sensitive lookups check box.
To disable case-sensitive file and directory name lookups, clear the Enable case sensitive lookups check box.
Click Apply.
Important
These changes will not take effect until Server for NFS is restarted. For information about how to stop and start Server for NFS, see Starting and stopping Server for NFS.
You also need to disable Windows kernel case-insensitivity in order for Server for NFS to support case-sensitive file names. You can disable Windows kernel case-insensitivity by clearing the following registry key to 0:
HKLM\SYSTEM\CurrentControlSet\Control\Session Manager\kernel
DWORD “obcaseinsensitive”
To configure case sensitivity for file and folder names using the command line
Open the command prompt.
To enable case sensitivity, type the following:
nfsadmin server [ ComputerName ] config casesensitivelookups=yes
To disable case sensitivity and optionally specify the case of file names returned by Server for NFS, at a command prompt, type the following:
nfsadmin server [ ComputerName ] config casesensitivelookups=no [ntfscase={upper | lower | preserve}]
Argument > Computer Name = The name of the computer you want to configure.
Important
These changes will not take effect until Server for NFS is restarted. For information about how to stop and start Server for NFS, see Starting and stopping Server for NFS.
Note
The ntfscase option sets the case sensitivity for the NTFS file system. The default case sensitivity is preserve (preserve case).
To view the complete syntax for this command, at a command prompt, type:
nfsadmin server /?
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