I ran into this problem and have a client that adds their own pictures and I wanted to save them the trouble of changing the case of their file extensions.
I changed the code in admin/includes/module/ih_manger.php
right after this line
PHP Code:
$data['imgExtension'] = substr( $_FILES['default_image']['name'],
strrpos($_FILES['default_image']['name'], '.'));
I added the line
PHP Code:
$data['imgExtension'] = strtolower($data['imgExtension']);
which converts all extensions to lower case.
Hope this helps someone else.