~/foo expanded inside single quotes

[gisle]

Configuration Information [Automatically generated, do not change]:
Machine: i686
OS: linux-gnu
Compiler: gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i686' 
-DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='i686-pc-linux-gnu' 
-DCONF_VENDOR='pc' -DSHELL -DHAVE_CONFIG_H  -D_GNU_SOURCE  -I.  -I. -I./include 
-I./lib -O2 -march=i386 -mcpu=i686
uname output: Linux caliper.activestate.com 2.4.18-3 #1 Thu Apr 18 07:37:53 EDT 
2002 i686 unknown
Machine Type: i686-pc-linux-gnu

Bash Version: 2.05a
Patch Level: 0
Release Status: release

Description:
        I believe that ~/foo should not be expanded when in single quotes.
        We discovered that this happens when used as argument to case.

Repeat-By:
        $ case `echo '=~/64all' >xx` in *) cat xx;; esac
        =/home/gisle/64all