TFS 2008: How do I change the default state for a Work Item?

Question

How do I change the default state for a Work Item? I tried changing the transition with no source, but it still says "Active" as the default. I tried renaming the Active state to "Proposed", but it still says "Active".

Answer 1

Either method would have worked, if I had restarted Visual Studio. Simply disconnected and reconnecting to the TFS Server isn't enough to clear the cache.