gistfile1.txt

var PH_oldstr:String = "foo bar";
var PH_oldArray:Array = "foo bar".split(" ");
var PH_newArray:Array = [];

for each(var word in PH_oldArray)
{
  PH_newArray.push(word.charAt(0).toUpperCase() + word.slice(1));
}

param1 = PH_newArray.join(" ");