Is it okay to have different lower_case_table_names value on master and slave?
According to the MySQL 5.0 Certification Study Guide



Chapter 32 Section 32.3.4, Pages 456,457 describe the Conditions for Binary Portability which bring out the following:


  Binary portability is important if you
  want to take a binary backup that was
  made on one machine and use it on
  another machine that has a different
  architecture. For example, using a
  binary backup is one way to copy
  databases from one MySQL server to
  another.
  
  For MyISAM, binary portability means
  that you can directly copy the files
  for a MyISAM table from one MySQL
  server to another on a different
  machine and the second server will be
  able to access the table.
  
  For InnoDB, binary portability means
  that you can directly copy the
  tablespace files from a MySQL server
  on one machine to another server on a
  different machine and the second
  server will be able to access the
  tablespace. By default, all the InnoDB
  tables managed by a server are stored
  together in the tablespace, so
  portability of the tablespace is a
  function of whether all individual
  InnoDB tables are portable. If even
  one table is not portable, neither is
  the tablespace.
  
  MyISAM tables and InnoDB tablespaces
  are binary portable from one host to
  another if two conditions are met:
  
  
  Both machines must use two's-complement integer arithmetic
  Both machines must use IEEE floating-point format or else the
  tables must contain no floating-point
  columns (FLOAT or DOUBLE)
  
  
  In practice, those two conditions pose
  little restriction. Two's-complement
  integer arithmetic and IEEE
  floating-point format are the norm on
  modern hardware. A third condition for
  InnoDB binary portability  is that you
  should use lowercase names for tables
  and databases. This is because InnoDB
  stores these names internally (in its
  data dictionary) in lowercase on
  Windows. Using lowercase names allows
  binary portability between Windows and
  Unix, to force the use of lowercase
  names, you can put the following lines
  in an option file:


[mysqld]
lower_case_table_names=1



  If you configure InnoDB to use
  per-table tablespaces, the conditions
  for binary portability are extended to
  include the .ibd files for InnoDB
  tables as well. (The conditions for
  the shared tablespaces still appliy
  because it contains the data
  dictionary that stores information
  about all InnoDB tables.)
  
  If conditions for binary portability
  are not satisfied, you can copy MyISAM
  or InnoDB tables from one server to
  another by dumping them using some
  text format (for example, with
  mysqldump) and reloading them into the
  destination server.


From this quotation, you can see that InnoDB's data dictionary is very case sensitive to table names. You are basically playing Russian Roulette by mixing tablename case sensitivity between Master and Slave.

I have discussed mixing cases between operating systems in MySQL :


Jan 07, 2013 : Is it possible to use the same directory for 2 MySQL servers?
Sep 28, 2012 : All our MySQL constraints have gone lowercase. What can cause this?
Sep 06, 2011 : Synchronizing local mysql database with remote one with a script or automatically?