Alen Ziver Malhasoglu's New Microsoft Commerce Server Blog

Commerce Server databases require collation settings that are not case-sensitive. If you haveconfigured SQL Server so that databases are created by using case-sensitive collations by default, you will have to take extra steps to make sure that the Commerce Server databases are not created by using your default collation settings. For example, you could pre-create the Commerce Server databases, and then use a command such as the following to change the default collation settings for these databases before you run the Commerce Server Setup program:
This is clearly documented in the deployment steps (including how to resolve it), so I'm assuming that if you open up a PSS ticket, they'll just refer you to this documentation.
Joe (http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=1583167&SiteID=1)