Yes, that should work fine. I just did a quick "backup bouncer"
test with this scenario (10.6.2) and it worked great. The only
potential issue is if you had some items with the same name,
differing only in case, in the same directory. Only one of them
would be copied over to the case-insensitive filesystem. For
You could have both those folders on a case sensitive
filesystem, but the last item to be copied to a case insensitive
filesystem would overwrite the previous item with the same name,
different case. I really doubt that you've created such a scenario
yourself, and the OS certainly doesn't do it for the standard
installation, so I would be too concerned about this. Clone away,
it should work great.