lower case url in hebrew wordpress

i got a major problem.. when i use wordpress permalink:
/%category%/%postname%/

the resulting address is being shown as Hebrew but it’s actually
a long string of letters and numbers – example:

http://www.israelguide.org/business-in-israel/web-marketing/%D7%A7%D7%99%D7%93%D7%95%D7%9D-%D7%90%D7%AA%D7%A8%D7%99%D7%9D-search-trax/

this is being redirected by wordpress from lower case into upper case
but Google that see’s the link in lower case is stuck because of it in a 301 loop..

this of course results in a redirect error

where (which file) does wordpress uses to construct url
where i can find (guessing here)

if single.php get url (something something)
and how can i wrap this small part to remain Upper url

Any ideas? Healthy discussion? help someone ? 🙂