Answer
The "Status" tab in the PXE Configuration Utility is a new feature of Deployment Server 6.8. The following are all of the possible states that can be displayed:
Off-line:
This indicates that the PXE Server is offline (Not Active).
Ready:
This indicates that the PXE Server is online, active and read to service PXE booting clients.
Updating:
This indicates that the PXE Server is online and receiving new images or configuration data, but is unable to service PXE booting clients.
Unmanaged:
This indicates that the PXE Server version is older and the current PXE Manager can not manage this PXE Server.