> <xsl:param name="Depth" select="count(ancestor::*[section])" />

that counts (if you do not pass any other value as the parameter)
the number of ancestors that have a section child. In your example this
will be 0 for titles 1 to 4 and 1 for title 5.

You said you wanted 

> Title 1 and 2 are at level 1. Title 3 and 4 are at level 1. Title 5 is at 
> level 2.

which looks like count(ancestor::section)

David


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