I am currently storing normalized versions of strings in my SQL Server database in lower case. For example, in my Users table, I have a UserName and a LoweredUserName field
Continue using lower case normalization. Only change to conform to Microsoft standards if a large issue develops.
This is unfortunate, but worthwhile. Sadly, Microsoft "standards" tend to be poorly considered and somewhat less than consistent; experience with them has shown that unless there is a compelling reason, it's best to simply stick with what works while it works. Note that this is generally NOT true of non-Microsoft technologies; but the arbitrariness of the Microsoft "standards" makes them worth avoiding.
Edit: I should clarify here; my opinion of Microsoft is very low, from long experience with their standards. As was pointed out in the comments, I don't have particular references to point out about "everybody else other than Microsoft"; this just comes from my personal experience. Your Mileage May Vary widely. This answer should be considered really just my opinion. Sorry for not making that more clear earlier.