--- pathauto.inc	2008-08-26 16:55:19.000000000 +1200
+++ pathauto.inc	2008-12-07 18:32:52.000000000 +1300
@@ -250,6 +250,11 @@ function pathauto_cleanstring($string, $
     $output = preg_replace("/$seppattern+/", "$separator", $output);
   }
 
+  // Optionally convert to lower case
+  if (variable_get('pathauto_case', PATHAUTO_CASE_LOWER)) {
+    $output = drupal_strtolower($output);
+  }
+
   // Enforce the maximum component length
   $maxlength = min(variable_get('pathauto_max_component_length', 100), 128);
   $output = _pathauto_truncate_chars($output, $maxlength, $separator);