I have it set to title case. Is it supposed to work like that? I understand the first letter will always be caps, but didnt think it would prevent me from capitalizing an abbreviation for example
Well the software can't differentiate an abbreviation from any other word so title case will capitalise the first letter of every word, or what it perceives to be a word.
No because you have set the software to force it to title case.
That is the purpose of the feature and for which it was originally requested and developed.