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Collections are a way for you to organize kata so that you can create your own training routines. Every collection you create is public and automatically sharable with other warriors. After you have added a few kata to a collection you and others can train on the kata contained within the collection.
Get started now by creating a new collection.
OK, this was quite frustrating as many have pointed out, but I figured out what it is asking for. The instructions should say to evaluate each word separately, meaning you apply the upper and lower case anew on each word. It doesn't count spaces, and it doesn't matter what the case of the last letter in the previous word is. You start the index count over again with each word.
Hopefully this helps aleviate some frustration for others.