This really happened today.
Scene: Project meeting, conducted by telephone.
Project Manager: How large is the user file?
Me: Right now it's about 4K, but it will grow as you add users.
PM: How much can you fit in 4K?
ME (trying to make it easy): About 4,000 characters.
PM: No, no, son! I mean how many lower case characters can you fit?
ME (puzzled): About 4,000?
PM: And how many upper case characters?
ME (unable to resist): You can fit about 4,000 lower case characters or 1 upper case character.
PM: See? You need a much larger data file.
ME: Yes, sir.
And you thought this only happened in Dilbert strips!