That does appear to be a bug in the skin - the setting has no effect.
Until it's fixed, you can work around it. Under
Tiger > Advanced > Custom code > CSS, enter this:
.hero header .title {background: none;}
...even when I force rebuild it.
Forcing a remake just causes jAlbum to reprocess all the
images. It doesn't do anything about the page layout and CSS in the album. So, for a problem like this, it's a complete waste of processing and uploading time.