I love MLF but it's not SEO friendly.

Says who?

Say's moi, because... why do my post titles on my forum show last on the title meta tags [forum name] - [posting title] . See it for yourself http://www.littleforum.net

For example when you add a new category it should automatically add the category name followed by the forum name to the title meta tag.

Why only when you add a new category? Where you want to display existing categories?

Tschö, Auge