this is interesting because I have 7dana template as well, and it doesn't work for me either as I have mentioned on a previous page.
my header.html in 7dana has the correct line:
<title>{site_name} {page_title}</title>
and still it doesn't work.
Could the template be a problem maybe?
Because it seems we are only 2 people who have problem with it and we both have the same template.