Upon further testing, it's clear that your utf8_bin collation is what's causing it, because it's not case-insensitive. You need to change the searchable fields to use a case-insenstive collation. In your case that would be utf8_general_ci instead of utf8_bin.
To do that, run the following by going to Admin->Tools->Install SQL Patches, and copy/paste the following into the box there and click Send:
Code:
alter table products change products_model products_model varchar(32) collate utf8_general_ci;
alter table products_description change products_description products_description text collate utf8_general_ci;
alter table products_description change products_name products_name varchar(64) collate utf8_general_ci;
alter table meta_tags_products_description change metatags_keywords metatags_keywords text collate utf8_general_ci;
alter table meta_tags_products_description change metatags_description metatags_description text collate utf8_general_ci;
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