Version:           0.12.17 (using KDE 3.5.5, Kubuntu (feisty) 4:3.5.5a.dfsg.1-3ubuntu9)
Compiler:          Target: i486-linux-gnu
OS:                Linux (i686) release 2.6.20-5-generic

K3b output:

System
-----------------------
K3b Version: 0.12.17

KDE Version: 3.5.5
QT Version:  3.3.7
Kernel:      2.6.20-5-generic
Devices
-----------------------
HL-DT-ST DVDRAM GSA-4167B DL11 (/dev/hdc, ) at /media/cdrom1 [CD-R; CD-RW; CD-ROM; DVD-ROM; DVD-RAM; DVD-R; DVD-RW; DVD-R DL; DVD+R; DVD+RW; DVD+R DL] [DVD-ROM; DVD-R Sequential; DVD-R Dual Layer Sequential; DVD-R Dual Layer Jump; DVD-RAM; DVD-RW Restricted Overwrite; DVD-RW Sequential; DVD+RW; DVD+R; DVD+R Double Layer; CD-ROM; CD-R; CD-RW] [SAO; TAO; RAW; SAO/R96P; SAO/R96R; RAW/R16; RAW/R96P; RAW/R96R; Restricted Overwrite]

TEAC CD-W540E 1.0F (/dev/hdd, ) at /media/cdrom0 [CD-R; CD-RW; CD-ROM] [CD-ROM; CD-R; CD-RW] [SAO; TAO; RAW; SAO/R96P; SAO/R96R; RAW/R96R]
Used versions
-----------------------
cdrdao: 1.2.2

cdrdao
-----------------------
Cdrdao version 1.2.2 - (C) Andreas Mueller <andreas@daneb.de>
  SCSI interface library - (C) Joerg Schilling
  Paranoia DAE library - (C) Monty
Check http://cdrdao.sourceforge.net/drives.html#dt for current driver tables.
ERROR: Could not find input file "VNG-C10B.BIN".

cdrdao command:
-----------------------
/usr/bin/cdrdao write --device /dev/hdd --driver generic-mmc:0x00000010 --speed 40 -n -v 2 --force --eject --remote 22 /home/user/del/vng-c10b/vng-c10b.cue 

--------------------------------------------------

---
$ cat vng-c10b.cue
FILE "VNG-C10B.BIN" BINARY
  TRACK 01 MODE1/2352
    INDEX 01 00:00:00
---

K3b finds it (it makes the md5 sum). 
the .bin file

---
$ ls
vng-c10b.bin  vng-c10b.cue
---

I see that .bin is not with UPCASE (of course in Window$ it works because it is not case sensitive). 

K3b should edit the .cue file to selected the correct file(in lower case) or to temporary rename .bin file with upcase.