In SharePoint Portal Server 2003 and Windows SharePoint Services 2.0, default values were entered using the index on the value you wanted as, well, default. An example is given in the screen shot to the right:
In the new version, however, default values are now entered in clear text.
As I discovered in document libraries after migrated from SPS2003 to MOSS 2007, You will be prompted by a dialog box stating "The default value for a Choice column must be chosen from amongst the specified choices.
In this case, you would need to enter the text "Final" instead of the index 0 (zero).