Well here is what I did for anyone interested:
1) Put each country in its own directory and geotargeted it in Google webmaster tools. I felt the information was good at this level so Ill let it ride off the main domain.
2) Created 4 subdomains for pages that is geotargeted for individual U.S. states. I have 4 sets of clusters of pages that contain all the states and contains information on different laws. I think Google might think im spamming but im not. Each state has its own laws on each subject and it is close but not the same. This removes 1/4 of my content from my main domain. I have one subdomain done right now and will work thru the weekend to complete the rest.
3) Lastly I redirected all pages moved with a 301 that had traffic left or was linked heavily. Im not gonnna sit there and do every page for files that had a few spammy links.
I will post back here and let you guys know if this works at all. I usually read the posts everyday and have been doing so for the last year.
I figure im gonna go all out on this one. Its all or nothing at this point.