Mercurial 2.1.2 on Windows 7 x64.

Mercurial doesn't normalize the case of directory components on a rename:

> hg init casetest
> cd casetest
> mkdir DIR
> echo '' > .\DIR\a.txt
> hg add .\DIR\a.txt
> hg commit -m "Adding a.txt."
> mv DIR dir.casechange
> mv .\dir.casechange .\dir
> echo '' > b.txt
> hg add .\dir\b.txt
adding DIR\b.txt
> hg st
A DIR\b.txt
> hg commit -m "adding b.txt."
> hg rename .\dir\a.txt .\dir\c.txt
moving DIR\a.txt to dir\c.txt
> hg st
A dir\c.txt
R DIR\a.txt

I would expect that renaming a.txt to c.txt would preserve the case of the DIR directory component 
just like adding b.txt preserved the case of the DIR component, regardless of what the file system 
says.