[Mediansoft]

Tried both methods mentioned, neither work. I am using X-cart 4.2 and my subcategories.tpl file is a little different then what you mentioned, in mine i orignally had:

{include file="customer/dialog.tpl" title=$lng.lbl_products content=`$smarty.capture.dialog` products_sort_url="home.php?cat=`$cat`&"}

and changed that into:
{include file="customer/dialog.tpl" content=`$smarty.capture.dialog` products_sort_url="home.php?cat=`$cat`&"}

The other file was the same as what you mentioned. But commenting out the lines there in combination with the changes i mention above don't erase the title.