I just spent a good couple of hours trying to figure out why the heck my simple test module seemed to be recognised by Magento but not working. It turns out it was because I had named it aXeHeadCoding_ObserverTest, and some part of the module system doesn't like the lowercase first letter. I don't know whether it's the config XML or the name of the directory, but it really screwed me over.
Now I'm curious. Is there a known reason for requiring a starting capital letter? And/or which part of the system is it that requires the capital letter? (I realise I could find out myself by simply changing each instance of AXeHeadCoding to aXeHeadCoding until it breaks, but trial and error isn't my favourite way to determine this sort of thing)