I finally got the workflow & moderation system set up that I've been envisioning.
How It's Intended to Work
You submit a post and submit it to the Moderation Queue. There's a box on the bottom of the Create Blog entry page that has 2 options; 1) Moderation Queue and 2) Draft. If you don't change anything, your post will automatically be submitted to be moderated.
A moderator reviews your post.
Your post gets approved or denied, with notes on WHY it was denied, giving you a chance to fix the issues
You automatically get a private message updating you on the status of your post
This is going to be the workflow process for all content on the site when it evolves past just blog posts. This does not apply for forum posts.