I opened layout.txt and saw this in notepad (Win7) when I opened it:

site_title:My Share Librarysite_motto:Virtual Public Library

It is being parsed correctly and functions internally by SSS, but the EOL or CR isn't being applied by notepad.

When I opened it in notepad++, I saw it this way:

site_title:My Share Library
site_motto:Virtual Public Library

Text files have LF as end of line character, Notepad does not read it correctly.