If I go look at my Resolutions in the admin panel, "Cancelled" is listed there. In the Statuses list, "Cancelled" is also there and the category is "Complete". Why do I still have two issues that are cancelled showing up in my filter of unresolved items? How can I fix this?
I'll assume you're talking about JIRA and not Confluence as the tags on your question suggest.
Your issues that have the status cancelled, but not the resolution cancelled will still show up as unresolved. To make sure the resolution cancelled applies automatically, I suggest you add a post-function in the transition to your cancelled status so that the resolution is always added, so nobody forgets.
The category of the status has no bearing on the resolved/unresolved state. They're only used for some plugins I think.
The status is a red-herring, there's no direct technical relationship between status and resolution (we tend to manufacture one in config, and that's a good thing, but JIRA mostly won't do it for you)
Have a look at the two issues - what is their "resolution" field set to?
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