Then you need to go to the admin menu,
go down to Edit Titles,
and check the box to update existing users.
Sounds like they are off somehow.
Title would never say "Moderator" unless you manually put it in there.
The "Status" is "Moderator" if you have given them moderator privledges, but the Titles are strictly based on post count unless you give users custom titles.
Sometimes titles will stop updating by post count if you have edited the titles and post count levels without updating all.
Note, when you check the box to update all existing users, you'll lose any custom titles you've set up.
If you look at "Who's Online" on your site or your User List. Those screens will show the user's "Status" (admin, mod, user etc...) but the showprofile screen will never show the word "Moderator". The Profile screen shows title and not status.
Hope that made more sense.