It is fixed. It is not possible to reproduce on a up to date dapper system. It has also not been any response to this bug lately, and the remote bug looks like it's fixed.
Please reopen if this is not the case.
** Changed in: nautilus (Ubuntu)
Status: Unconfirmed => Fix Released
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Creating a folder using uppercase characters on fat 32 partition creates 2
folders
https://launchpad.net/bugs/9758
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