First a minor item, under My Moderation Tasks
The wording, date and time format is a bit weird. I would suggest to use "Created:" and then a localized time stamp. As a generic remark I would expect to see all dates, times and numbers be formatted according to either user locale or a globally defined one. That format looks just odd.
There seems to be an extra space at the end of the post when viewing it under My Moderation Tasks, Task Details.
Next, clicking on the subject of the blog under My Moderation Tasks, under Task Details, leads to a Page not found error.
I figured out that I needed to authenticate myself before accessing the moderation service. There is no login possibility in the moderation service itself.
I think there should be a banner or something telling the moderator how to actually approve/reject the post. I figured I have to go to the blog post itself to approve/reject it, but it's not that obvious.
When as a moderator selecting "Needs more work", how to give comments to the user? How is the user notified of the blog not getting approved? Reading Gabi's instructions, I think I'm supposed to enter the comments in the body of the blog which seems non-intuitive to me.
When posting, I noticed that there is a discrepancy in how the view element for posting is displayed, in case of direct posting it will be visible under the editor whereas when subject to pre-moderation it will be visible on the right side of the editor.
As author, the buttons are below the editor
As contributor, the buttons are on the right