A few points need to be clarified here:
Postgresql does everything in lower case whether you like it or not.
create table Buddies (Name text, Number text, Address text, ID serial);
will create a table called buddies with fields named name, number, address, and id.
Older versions of PHP has some issues with this automatic upper to lower conversion. 4.0.6 seems to have worked around it.
In PHP 4.0.6 and postgresql 7.1.x, you can sling around table and field names with mixed upper and lower case and it just doesn't matter. In some earlier versions, you get errors.
So the simple answer is to just upgrade to the latest version of each if you can.