DNS is case insensitive. You've just found a bug in namecoind.
Namecoind is application-neutral, i.e. it doesn't do the conversions on behalf of the applications (domains being just one of them). We need a GUI tool to do all this. However, there already are online tools that can do the conversion, collision checking and even registration for you.
As for the standard, this is from the
extended specification draft:Name fieldName is a lowercase string, which begins with
d/, followed by the domain name. Namecoin enabled resolvers will append the default TLD (
.bit) to the name specified here.
Example:
d/exampleThe
IDNA standard encoding is used for internationalized domain names. This means that Unicode names need to be converted to ASCII compatible encoding according to IDNA, before registration. This can be done using the
idn command-line tool:
$ idn -p Nameprep ŝtelo
xn--telo-u5a
Also, only valid domain names are allowed, which means characters other than lowercase letters, numerics and dash are not allowed, as well as names longer than 63 letters and names starting with a dash.
(Note: However, since this is a measure against compatibility issues with DNS, names consisting of all numeric values and underscore can be discussed.) Meaning, if the registered name contains Unicode characters, capital letters or symbols, it will be rejected by resolvers.