I encountered this problem, when I am upgrading a template from 1.0 to 1.5... I thought this was only a minor problem, until 3 hours past and I still couldn't fix it... I checked everything on the admin, settings, parameters, and even global configuration. Until I rechecked the module param at the template <jdoc:include type="modules" name="user2" /> and I try putting style... first a blank one... it doesn't work, then I try putting style="xhtml" and now the title of module shows
<jdoc:include type="modules" name="user2" style="xhtml" />
<jdoc:include type="modules" name="user2" style="xhtml" />