I have a table of items that each have a particular status color icon. The users will need a quick method to change this status. I imagine click on the status icon an picking the new status. However, I can't seem to nail down how they pick the status. Do I bother to display the current status in the list? Should I just use a drop down list? Would clicking a link to directly change the status rather than displaying a radio button/close button combo be more intuitive?
Here's my current idea (poorly mocked up with paint.net):
Edit: Thanks everyone for suggestions. I've gone with some suggestions from @kalessin. Here's the final version: