Try it:
AdminCP > Plugins > Add a Plugin
Product: vBulletin
Hook: postbit_display_complete
Title: Replace thread title
Execution order: 5
PHP Code:
$post[message] = str_ireplace("{title}","$foruminfo[title]",$post[message]);
Plugin is active:
Yes //do not forget this
(you may see a line break here, but it's all a single line)
note: str_
ireplace (case insensitive) is a bit more intensive than str_replace.
Use str_replace if you prefer (your users will forced to use it in lowecase).