LINQ Distinct operator, ignore case?

StringComparer does what you need:

List<string> list = new List<string>() {
    "One", "Two", "Three", "three", "Four", "Five" };

var distinctList = list.Distinct(
    StringComparer.CurrentCultureIgnoreCase).ToList();

(or invariant / ordinal / etc depending on the data you are comparing)

[See Marc Gravells answer if you want the most concise approach]

After some investigation and good feedback from Bradley Grainger I've implemented the following IEqualityComparer. It suports a case insensitive Distinct() statement (just pass an instance of this to the Distinct operator) :

class IgnoreCaseComparer : IEqualityComparer<string>
{
    public CaseInsensitiveComparer myComparer;

    public IgnoreCaseComparer()
    {
        myComparer = CaseInsensitiveComparer.DefaultInvariant;
    }

    public IgnoreCaseComparer(CultureInfo myCulture)
    {
        myComparer = new CaseInsensitiveComparer(myCulture);
    }

    #region IEqualityComparer<string> Members

    public bool Equals(string x, string y)
    {
        if (myComparer.Compare(x, y) == 0)
        {
            return true;
        }
        else
        {
            return false;
        }
    }

    public int GetHashCode(string obj)
    {
        return obj.ToLower().GetHashCode();
    }

    #endregion
}