Backport of Tim's checkin 2.177: SF bug #417093: Case sensitive import: dir and .py file w/ same name Directory containing Spam.py spam/__init__.py Then "import Spam" caused a SystemError, because code checking for the existence of "Spam/__init__.py" finds it on a case-insensitive filesystem, but then bails because the directory it finds it in doesn't match case, and then old code assumed that was still an error even though it isn't anymore. Changed the code to just continue looking in this case (instead of calling it an error). So import Spam and import spam both work now.