Expanding on this post: http://www.amywilliamsdesign.com/blog/2008/08/28/viewing-your-orders-and-sales/

The orders management system allows you to let your customers know the status of their order – On Order, Shipped, Back Ordered, Completed, Canceled; if you have it enabled for customers to look it up. It also lets you print packing slips – both with and without prices (for gift orders).

When you click on view orders from the Orders Panel:

You’ll see the list of orders your site has received….. you can click on the order # to view details of the order, print a regular printing slip, and a printing label.

When you click on the order #, you’ll see a page like this:

On this page, you can update the order status (don’t bother unless you have order tracking enabled for clients to view their orders!), update details of the order, print a regular or gift packing slip, or print a mailing label.

A gift packing list:

Regular packing list with prices: