Actually, Moderating would refer to inline moderation.
That is to say, things that don't require entrance to the Mod CP.
If someone is in the Mod CP, it will say, "Moderator Control Panel" or similar.
Ghan has said he has fixed this. Monovertex please confirm this fix. This was only a problem with people that had signatures in the upper levels like not the special members but the respected members.