2. Hovering over the title field highlights it with background color to provide a subtl alert the user that it can be edited.
3. Clicking the title switches it from system text to an input form.
Flickr's edit in place behaviors make it easy to change data on records without requiring the round trip to a full page editor form. They provided one of the earliest examples of this behavior, using AJAX to quickly update fields in place, and has remained the model to emulate for some time.