What you have written should work. Since it doesn't, you'll have to do some sleuthing to figure out why not.
Most likely cause is that the Salutation field on your layout comes from a different table than the one where you have in your calculation expression. Double click this field on your layout while in layout mode and make sure it's from the right table.
Absolutely right! I don't know why, but I had placed the filed from a related table into the Contacts table. Both fields had the same name, but were from different tables.
Thanks SO much!