FYI, It looks like Jeremy Durham has the most up-to-date version of this plugin, and has gemified it as 'us_states_select'.
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lib
README
init.rb

README

UsStates
========

From http://svn.techno-weenie.net/projects/plugins/us_states/, updated
to run under rails 2.2.

To select "priority" states that show up at the top of the list, call
like so:

<%= us_state_select 'child', 'state', :priority => %w(TX CA) %>