Making the passwords case-sensitive adds to the security of the login to the directory. For example, if you have a password aBc that is case-sensitive, all the trials of login with the combinations like abc or Abc or ABC would fail.
In eDirectory 8.8 and later, you can make your passwords case-sensitive for all the clients that are upgraded to eDirectory 8.8.
By enforcing the use of case-sensitive passwords, you can prevent the legacy Novell clients from accessing the eDirectory 8.8 server. Refer to Section 8.4, Preventing Legacy Novell Clients from Accessing eDirectory 8.8 Server for more information.