Glenn,
It looks like there's an issue where progress indicators don't respect picklists based on record type. It's rather roundabout, but I was able to find a workaround that might work for you. If you override the metadata of the picklist field you're using on the progress indicator, it will respect those.
So, for instance, I have one model called Opps of a specific record type and its StageName is tied to a progress indicator. I then create another model, OppClone, that's a clone of Opps, but only has one record. Then, on the Opps model, I can override the StageName field to get its values from rows in a model. The model will be OppClone and the field StageName. You're basically setting the field to be the values it already is, but somehow the progress indicator respects the fields in the overridden metadata.
