I was checking out the moderator functionality to see what administrative functions they can do and found the following.
logged in as moderator
selected a user from either the Memberlist or from a thread in the forum
selected that users profile
selected Edit Profile
checked Delete this Member
pressed Update Profile
received message that my profile had been updated
member had not been deleted
secondly, should a moderator be able to actually delete a member or just remove them from the forum. not sure if the design allows for that though.
finally, i selected a member from the memberlist that was not in a forum moderated by the moderator and the moderator still had the capability of deleting the member (even though it doesn't work).