Nope, not reproducible on either 0.97 or trunk (0.98 + a little extra)
using LTS 14.04. Your system is whacked :-) Off the top of my head:

Are you using a non-English language environment?
Do you use/switch between alternate keyboard maps? (i.e. IBus, setxkbmap)
No config attached, so I can't see if you have set any strange 
shortcuts/keybindings.
No debug output of the error.

** Changed in: terminator
       Status: New => Incomplete

** Changed in: terminator
   Importance: Undecided => Low

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https://bugs.launchpad.net/bugs/1506568

Title:
  Capital letters don't work in tab titles and other places

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