If you format a volume as Case Sensitive/Journaled and try to install Mac OS X Server on it, the Installer will tell you that you can't install on the selected volume until settings are changed.
When you need to use the Case Sensitive/Journaled file system, you should partition the server's hard disk (or use multiple hard disks). Put case sensitive items on a Case Sensitive/Journaled volume, and install Mac OS X Server on a volume that is not case sensitive. 
Examples of reasons to use the Case Sensitive/Journaled file system are: 
-  When hosting (non-boot) data volumes containing case sensitive files
 -  As a higher performance alternative to UFS
 -  Situations where you need a file system that supports case sensitivity and journaling
 -  When you need to use case sensitive volumes larger than 1 TB (UFS supports volumes up to 1 TB ; HFS Plus supports volumes up to 16 TB)
 -  Situations where you have legacy UNIX applications and scripts that require or were only designed for case sensitive file systems