Try giving your html element an id
<html id="htmlTop" xmlns="http://www.w3.org/1999/xhtml">
and applying your viewModel to it
ko.applyBindings(viewModel, document.getElementById("htmlTop"));
EDIT
This works for me; I just ran this page and the title said "Hello". Double check your code for typos.
<html id="htmlTop">
<head>
<title data-bind="text: title"></title>
<script type='text/javascript' src='jquery.min.js'></script>
<script type='text/javascript' src='knockout-1.2.1.js'></script>
<script type="text/javascript">
$(function () {
var viewModel = { title: "Hello" };
ko.applyBindings(viewModel, document.getElementById("htmlTop"));
});
</script>
</head>
<body>
</body>
</html>
Screenshot:
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