The underlying filesystem (NTFS) is case-sensitive, so I think it should basically work fine. Sure, Windows tools are case-insensitive, so if you use bash to create foo and Foo in the same directory you'll probably only be able to access one of them from Windows Explorer, but I doubt that's much of a problem for most people

It does seam to be case sensitive! Creating two files called a and A works. They even show up in explorer. It doesn't work to delete one of them from explorer though. No errors - they just reappear. After trying, I now have a file called a that I can't delete from bash or explorer!