How do I overlay node title on image ?

You can use some css for that :-)

I use this for my headlines:

.headliner{
        /* only need a width if it's not inheriting one
        width:; */
        position:relative;
}

.headlinerbox{
        position:absolute;
        bottom:0;
        left:0;
        width:100%;
}

.headlinerbkg{
        background:black;
        filter:alpha(opacity=80);
        -moz-opacity:0.8;
        -khtml-opacity: 0.8;
        opacity: 0.8;
}

.headlinertext{
        padding:2px;
        padding-top:10px;
        padding-left:5px;
        padding-bottom:8px;
        color:white;
        font: bold "Trebuchet MS", Arial, Helvetica, sans-serif;
        font-size:16px;
        text-align:left;
}

And this in my views-tpl-file:

<div class="headliner">
        <?php print $fields['field_news_headlineimage_fid']->content; ?>
        <div class="headlinerbox">
        <div class="headlinerbkg">
                        <div class="headlinertext">
            <h5><?php print $fields['title']->content; ?></h5>
                        <?php print $fields['field_story_shortdescr_value']->content; ?>
                </div>
        </div>
    </div></div>
    <br />

Result: the headline at http://www.bamblelan.no/ (rotating every 10 seconds)

Please reopen if this is still an issue with ImageCache 6.x-2.0-rc1.