could you try wrapping wordpresses the_title(); function with ucwords and strtolower
<?php echo ucwords(strtolower(the_title(null, null, false))); ?>
From what i can gather this takes the title value uses strtolower to turn it into lowercase, then ucwords to capitalize each word.
I haven't tried this myself so i don't know it it works but this is how i would try it.
Hope this helps
EDIT: right i've had a look at one of my old files, in your functions.php you could define a function to hook into the save_post action. Using the post variable you should be able to adjust that data, but like others have said you have to be careful incase it doesnt produce the desired effect.
add_action('save_post', 'save_postdata');
function save_postdata($post_id) {
//edit code here
update_post_meta($post_id, 'title', $title);
}
I'm using the update_post_meta() function, i'm not entirely sure if this has the ability to edit the title, i don't have to ability to run a test unfortunately.
What do you guys think?