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1. Click on the clip you want to add titles to in the Viewer.
2. On the right side of the screen, there is a panel of buttons with different icons (musical note, camera, etc.). Click on the "T" button.
3. You should see a variety of title types. You can click on them to see a preview of the text layered on top of the clip.
4. Once you choose a title style, you can change the content of the text. There will be two text fields that you can type into--the one on the top will give you your title, and the bottom your subtitle.
5. You can change your typeface as well as size and color with the options surrounding the type field.
6. If you wish to lengthen or shorten the duration of your title, drag the slider under the "Speed" heading.
7. The scroll bar in the titles menu gives you a list of effects that can be added to your titles if you so wish. These include dissolves, wipes, bounces, etc. There are also stationary options within the menu.
8. Once you have your titles looking the way you want, drag the blue icon for your title into the Viewer area right before your selected clip. iMovie should split your clip into the titled portion (depending on your duration) and the remainder of the clip.
9. When iMovie has finished rendering this new titled clip, you can move the playhead to the beginning and watch your movie.
Apple.com has a great video tutorial on adding titles. Click here to view it.