Thanks for your response!
Unfortunately even after the update I am still getting the same error. All the other fields display perfectly in the transaction reports, but the state fields still simply show {billingstate} and {shippingstate} rather than the selection from checkout.
In my checkout form, in case I wasn’t clear, I am using the dropdown under country that has all 50 states. This works fine with Paypal, and you can see the state correctly if you login to the admin panel and look at your sales records.
Do you have any suggestions, and if not is there any way I could hire you to take a look at the code? My customer does not want to go live with the site until this shows up in that transaction report.
Thank you very much!
Chris