Can't use time capsule because it won't backup a "case sensitive drive".  what does this mean?

Back up fails because the time machine can't back up a "case sensitive" disk.  I have no idea what this means or how to fix it.

What are you backing-up to, an external HD or a Time Capsule?
Check the Format of your internal HD and your external HD (assuming that's what you're backing-up to), via Disk Utility (in your Applications/Utiliites folder).
Click the partition (indented under the main line for the drive) in the sidebar, and see what's shown at the bottom:
Do the same for your Time Machine drive, and report what you find.

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