Hi,
tjnemez thanks for your time!
First to illustrate what the problem looks like, have a look at XOOPS main page. The original title "NewBB 2.0 RC2 release" is converted to "Newbb 2.0 Rc2 Release".
I'm using custom theme, but the problem is not there, because I also tryed several others. I was able to make it look like I want by commenting lines 442 and 443 in functions.php, however this is not a fix, but workaround.
In the admin menu there is an option 'Stop Shouting in Titles', but it has no effect.

BTW in admin, in 'News Block Config' there is no way to select no image for 'Select News Spotlight Image:' option too. I think there shuld be. It is probably the same for WF-Sections part, but Idon't have it installed.

Thanks again!

still think you otta check style.css as a lot of XOOPS themes use same .item class for displaying news.

I had a related problem, but I wanted all caps for some of my postings because of Acronyms. You can view my post and liquids fix for it here.

@Stewdio: That fixed the problem. Thanks!

And thank you tjnemez for your time!