XPath statements are case sensitive. To get around this use the following example to convert all data to lower case before performing the equality check:
/bookstore/book[translate(@category, 'ABCDEFGHIJKLMNOPQRSTUVWXYZ', 'abcdefghijklmnopqrstuvwxyz') = '" + searchtext.ToLower() + "']
Thanks very much to Harish for this!