Confirmed members do not appear confirmed.

New members get the confirm email.
They click the confirm link in the confirm email.
They are taken to the page that says they are confirmed.
They can sign in and use the site as normal.

All of the above can be done with no errors at all.

On the admin page for "Members" confirmed members do not appear confirmed (they are still grey and not black font).

It is very confusing to admin to say the least.

Is there a way to fix this that is a sure thing?

Post the full version of your Dolphin, the x part of 7.0.x

7.0.9

What are the current moderation settings?

Have you checked the actual status of the account to see what it's set for?

Active and confirmed are 2 different things. So even if they have confirmed their account, does not necessarily mean they are active. They could still be in a unapproved state waiting for the admin to approve. It depends on the moderation settings.

I have the site set to confirm and activate the profiles through email.

New members get the confirm email.
They click the confirm link in the confirm email.
They are taken to the page that says they are confirmed.
They can sign in and use the site as normal.

All of the above can be done with no errors at all.

It has worked perfectly and then just stopped.

There are 3 choices in the Moderation settings.

Automatic profile activation after joining: not checked

Do not change profile status after editing profile information: checked

"Have you checked the actual status of the account to see what it's set for?"

Please specify "the account"

Automatic profile confirmation without Confirmation Email: not checked

My current settings dictate that Admin should not have to approve membership.

The way I understand this setting is that checked, you do not have to manually activate the account.  Unchecked you have to manually activate the account.

The members section of the backend should let you know how many members are active and not active and which have not answered the confirmation email.

Holy skunk sweat!! That worked. I have no idea how that got changed but know that I did not change it.

My host tech support did some reconfiguring as part of troubleshooting another matter.

Hard to say.

Thanks a ton...no wait...make it a ton and a half.

You are welcomed, that is what we are here for.  Don't forget to go and active the inactivated accounts.