When we take your code, save it as a custom template and use it in a listing, the title for the template previews just fine. So here are a couple of questions to help us get to the root of your problem:
1. When you say the template title appears, what are you referring to? The name you gave your custom template or the eBay title of the item you are listing?
2. Are you typing a title into the Template Title box that is located to the right of where you choose your template on the lister page?
In reference to your #2 question about the store window, as long as you have not turned off the use of the store window in your account settings, any listings posted through Auctiva will be appended with your Store window without you having to do anything.
That's a good start
Cara