I submitted two entries, both ended up in the moderation queue as expected. I deleted the one entry but left the other. You are submitting entries as tests while you are not logged in, correct? If you’re logged in, you’re adding entries with the same permissions as if you were adding them from within the admin so they will not be in the mod queue but in the approved queue.
Of note, the current theme that is activate has a critical flaw. jQuery is being loaded after a couple scripts that depend on it to be loaded first. Thought I’d point that out because that’ll cause you some troubles.