There are a few more reasons why comments might get put in the "moderation queue" even though you have moderation off.
1) the number of hyperlinks in the comment exceeded your set limit. a large number of links is a characteristic of spam, so this setting can help control spam. Set this setting much higher to keep comments with many links from being caught.
2) you have a spam blacklist word that is too generic (or, if it is catching EVERY comment, you have a "blank line" in your spam blacklist, so every comment triggers that "blank word."
Hope that helps.