Hmmm.. That would seem to indicate that Delivered is 3. Can you poke around in your database? Go to Cpanel and run phpmyadmin. Then click on the table called "zen_orders_status", then click the "Browse" tab. Under "orders_status_id" what number is defined for Delivered? Once you get that number for me, I'll tell you what you need to change.
BTW -- I just realized that there is a simple way to make this feature admin editable. I will certainly implement this in the next version. But, I'm still not sure whether I will release the next version for free or not.
I've implemented a much better tracking entering system for the next version. It's pretty sweet. When you click on a PO, the tracking page pops up in a greybox (kind of like lightbox, but looks more like a window.) Then, once you enter the tracking, the greybox closes, and the page refreshes so the PO you just entered is no longer there. It's a much better system for entering the tracking from the admin side.