[Decoding]

Примерно так

Код:

procedure TForm1.Button1Click(Sender: TObject);
var
  str, tmp, Result: string;
 begin
   str := 'хорошая машина';
   while Length( str ) > 0 do
   begin
      if Pos( ' ', str ) > 0 then
      begin
         tmp := Copy( str, 1, Pos( ' ', str ) );
         Delete( str, 1, Pos( ' ', str ) );
      end
      else
      begin
         tmp := str;
         str := '';
      end;
      Result := Result + AnsiUpperCase( tmp[1] ) + Copy( tmp, 2, Length( tmp ) );
   end;
   Caption := Result;
end;