Jeremy,
I have the same problem as Traci. I configured a user as a delegated administrator and have tried the user as a member of the Site Owners and Site Members groups.
When my delegated administrator is a member of the Site Owners group he accesses the page and clicks the "Site Actions" link he is able to bring up the "Site Settings" page and see all the options a Site Owner would normally see except the options under "Delegation Management" and "Delegation Configuration".
When my delegated administrator is a member of the contributors group he doesn't see the "Site Actions" link on the page at all.
Any ideas, suggestions or thoughts?
Thanks!