JBVFS-170 contains a fix for case sensitivity issue with the current version of JBoss VFS. It has been marked as fixed in 3.0.1 version of VFS. Please upgrade to this version, so that the fix becomes available in AS7.
P.S: I have marked this issue for 7.0.0.CR1, since the fix for
JBVFS-170 is already committed and only the release is pending. However, if it cannot be done before 7.0.0.CR1, then feel free to move this out.