The Lifecycle (I'm not sure where Workflow came from) field on a Queue changes which statuses are available in that queue. Changing a random queue from default to approval doesn't turn it into an Approval queue. That Lifecycle is only intended to be used on the ___Approvals queue and there's a bug open to hide it from normal queues to avoid the confusion that it causes.
Yes, lifecycle. I don't know where workflow came from. Turns out I can't switch the queue's lifecycle back to 'default' now. RT won't let me (no error, just won't save the change). -------- RT Training Sessions (http://bestpractical.com/services/training.html) * Boston March 5 & 6, 2012