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For my Magento store, the threshold qty is not considered on inventory level, although this is set up in the backend.

This is the view with the output of the QTY message

app/design/frontend/base/default/template/cataloginventory/stockqty/default.phtml

<?php if($this->isMsgVisible()): ?>
    <p class="availability-only">
        <span title="<?php echo $this->__('Only %s left', ($this->getStockQty())) ?>"><?php echo $this->__('Only %s left', "<strong>{$this->getStockQty()}</strong>") ?></span>
    </p>
<?php endif ?>

This file gets the input out of

app\code\core\Mage\CatalogInventory\Block\Stockqty\Abstract.php

public function isMsgVisible()
    {
        return ($this->getStockQty() > 0 && $this->getStockQty() <= $this->getThresholdQty());
    }

but it seems that $this->getStockQty() is not considering the manually edited inventory qty.

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