As it is not possible to have spaces in status names, the status could be 'working-on-it' or 'in-progress'. Personally, I find the name 'accepted' clear enough, it is a matter of convention, but 'working-on-it' certainly is more intuitive.
For information : google issue tracker at code.google.com uses "started". -- Adrien Destugues / PulkoMandy http://pulkomandy.ath.cx