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jmccormac - 6:17 pm on Jul 1, 2010 (gmt 0)
The US states all have their own sub domain under .us (or.us, ca.us etc). Some of ICANN regulations exclude some geographic domains such as countries. I'm not sure how US states will be covered as they may have to use a three letter or more approach. (Two letter codes are used for country code TLDs.)
Regards...jmcc