Index: bp-core/bp-core-templatetags.php
===================================================================
--- bp-core/bp-core-templatetags.php	(revision 3513)
+++ bp-core/bp-core-templatetags.php	(working copy)
@@ -896,8 +896,9 @@
 	} else if ( bp_is_blog_page() ) {
 		if ( is_single() ) {
 			$title = __( 'Blog &#124; ' . $post->post_title, 'buddypress' );
-		} else if ( is_category() ) {
-			$title = __( 'Blog &#124; Categories &#124; ' . ucwords( $wp_query->query_vars['category_name'] ), 'buddypress' );
+		} else if ( is_category() ) { 
+			$category = get_category_by_slug( $wp_query->query_vars['category_name'] );
+			$title = sprintf( __( 'Blog &#124; Categories &#124; %s', 'buddypress' ), $category->name );
 		} else if ( is_tag() ) {
 			$title = __( 'Blog &#124; Tags &#124; ' . ucwords( $wp_query->query_vars['tag'] ), 'buddypress' );
 		} else if ( is_page() ){
