Incorrect password

Theres to be a bug in the latest version of wordpress MU version 1.2.5a.

What’s happening is this. After you create a new blog on mu, if the username starts with a capital letter like say Sam it’ll come back saying incorrect password when you try to log in, but it works fine if the user name was created using lowercase.

I may be incorrect here, but what i thing may be causing this problem is either css text-transform or a strtolower php call being done incorrectly somewhere with the login, since it does enter into the database unpon create correction with the letter being uppercase, you just can’t log in with it