Just a follow up, got another response with apple and they said: "This is a well known bug with Lion. It just doesn't work, and won't until an update is released". So I am not crazy, haaaaa
"For now, the work-around is to use the Transform tool on the title clip itself. (the one to the left of the crop tool). Select the title clip, and make sure your playhead is inside the title so you can see it. Click the transform icon, and then you should be able to click anywhere in the viewer and drag; the Title should move".