t4007: modernize the style

This is one of the oldest scripts; update it to match more modern style.
Notably, we should:

 - Put the test title on the same line as the "test_expect_success", and
   end the line with a single-quote to begin the body of the test which is
   one multi-line string; and

 - Run as many commands inside test_expect_success, not outside, to catch
   unexpected breakages.

Signed-off-by: Junio C Hamano <gitster@pobox.com>

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