Comment 1 for bug 62321

Quoted from the LFS Page mentioned in forum thread:

--snip
Filesystems with MS-DOS or Windows origin (i.e.: vfat, ntfs, smbfs, cifs, iso9660, udf) need the “iocharset” mount option in order for non-ASCII characters in file names to be interpreted properly. The value of this option should be the same as the character set of your locale, adjusted in such a way that the kernel understands it.
[...]

FAT: utf8 is not a recommended IO charset for FAT filesystems,
    filesystem will be case sensitive!

This negative recommendation should be ignored, since all other values of the “iocharset” option result in wrong display of filenames in UTF-8 locales.

--snip

Ubuntu uses utf-8-locales by default, so it is _no_ bug. If you are afraid of losing data (never had any troubles with utf-8 on fat, but who knows?), add "iocharset=CODEPAGEYOUWANT" or "iocharset=ISOLOCALEYOUWANT" to your fstab-entry that mounts the fat-partition.