New customers needing approval

[mza1979m]

I need help understanding something...

I have the following settings set to OFF
- "Approve New Customers"
- "Email Activation for New Customers"
- "Require login name"

and I have "Guest Checkout" set to ON.

I had someone register an account on my website using AbanteCart. When I logged into the admin panel, I see, highlighted in red, "Customers Waiting Approval: 1". When I clicked on this new person, it already had "ON" for "Approved", but right above that, "Status" was OFF. First of all, what is the difference between "Approved" and "Status"? And why was "Status" off by default? How can I change that? Can customers do anything when their status is off? The manual seems to have very limited information.
Thanks in advance.