FAT has about 3 places that it stores the volume label:

1) in the boot sector
2) as an oldschool directory entry in the root directory
3) as a vfat entry for the root directory

only the vfat entry allows for mixed case.

my ipod is called "jPod" ::


desrt@moonpix:~$ sudo mdir -i /dev/sdc2 :: 
 Volume in drive : is jPod (abbr=JPOD       )
 Volume Serial Number is 7B9F-661C
Directory for ::/


but hal shows it as "JPOD" and causes nautilus to show it as such.

this needs to be fixed before hal supports renaming volumes in any meaningful way.