entering an address for the USA at Checkout for billing when you first start it says Maryland which is my default location. When I select a different sate, say Minnesota (see images) It still says Maryland when the selection drop down closes. Open it again and Minnesota is ticked, which implies it is in fact selecting the right state. This will be totally confusing to a customer. It was for me! I notice in the demo, the state selector looks different to the others, just a plain browser generated one. (well at least in chrome on a mac) and it works properly. Is this a bug you have been aware of for a while?
The exact same thing happens with the Shipping address if "Ship to same address?" is unchecked. see the 3 screenshots http://gasolicious.com/help/checkout-state-problem-abundance.html