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The Order can not be transferred to the Shipment

The Order can not be transferred to the Shipment

Hi Guys, 

 

I am hoping that one of you will be able to assist me with my problem, i am new to magento and of course still learning the ropes, a few orders have a very odd status under my shipping colum saying that "The Order can not be transferred to the Shipment" 

 

Item status says cancelled while, order status is processing, i have a grand total but no total paid. 

 

But yet PayPal has managed to capture payment.

 

Can anyone explain what this means or offer a solution?