Index: panels.module
===================================================================
--- panels.module	(revision 1565)
+++ panels.module	(working copy)
@@ -1071,7 +1071,7 @@
   if (!empty($pane->configuration['override_title'])) {
     // Give previous title as an available substitution here.
     $keywords['%title'] = $content->title;
-    $content->title = $pane->configuration['override_title_text'];
+    $content->title = t($pane->configuration['override_title_text']);
   }
 
   // Pass long the css_id that is usually available.