I have ZFD 6.5 with NetWare 6.5 SP6. Universal password is enabled and
working, and I have eDir 8.8 SP1 and LDAP set to use universal password
via the env setting so that LDAP logins are case sensitive too, and that
is working fine - anything that uses LDAP is case sensitive login.

I set XTier to use Universal Password via the check-box in
Authentication Domains in iManager but this does not appear to be doing
anything - the logins to middle tier and NetStorage are not case sensitive.

The only reason this is such a big issue is we have a reasonably large
remote office currently on Novell Branch Office 2.0 with CIFS mappings
to the server which do not map if the user miscapitalizes their
password, so often we have users in that office logging in to zenworks
and not getting their drive mappings to the server b/c of
miscapitalization. If I could make the middle tier login case sensitive
it would fix all that!