Hi Melissa,
There are two fields in QAC which shows a status: Status and Last Run Status.
I think you need to use the Status field. The type of this field is a Choice List and you can modify list values as you need (Test Management | Test Library | Actions | Manage Choice Lists). Please see my sample video: http://screencast.com/t/hz7yXoONfY3.
The Last Run Status fields shows the status of the last run. Currently, it can be only Passed, Failed, Skipped and Blocked. We have a feature request in the backlog to allow customized and tester controlled test results.
Anastasia
Customer Care Team
