Hi, David - great job so far, let's see if we can figure out why you don't see data in those fields.
I looked at your drop downs, and they are both using Title for the value, so that should be the right thing to submit. You shouldn't have to remove any spaces - you want the value you send to the list to be exactly the same as the options available. Can you put the new fields with the concat formula on your form so you can verify the value looks right?
Another option would be to include the ID column in your data connections to the Status and Department list and submit the actual ID instead of trying to update with the text value. :)