Please test with one of the default joomla template as this is most likely a bug/feature in the template you are using where the module title can never be displayed in that position

Set "Module Style" in "Advanced" settings of module to "xhtml" or "html" or any other that shows the headline to override the template style for module position. That's all. Not a bug.

It depends on the module chrome (Module Style) if a module title is shown or not. The module chromes are defined by the template and the module position you use.
Like Ilovo explained you can override the default style for a position in the advanced settings.

Closing as not a bug.

Thanks guys! You're right. I wasn't aware that the module chrome could affect the title.

Thanks everyone. I did wonder about the template being the issue since the nav bar is hard coded, etc. (Shape5 MaxedMag). In the end I switched the module from show flags to 'No' and the text on the front end automatically switched to the next line 'below' the nav bar. Which is ok too. I will try the suggestion above however as this may be preferable, but I expect the title will again make it too wide and it will drop down. Anyway.... thanks.