wordpress title tag

pear analytics and a couple other seo tools tell me i have no title tag...

I've tried it every way i know and I've searched the web and tried every way i could find online with no luck at all... is this a problem that needs to be fixed right away? and if so what am i doing wrong?

It goes in between the head tags in the header.php right? this is what it looks like right now and the tools still say i dont have one =(

<title><?php wp_title('title'); ?></title>

thanks!