I am not sure its possible.
The nav in E70 X5 and other new BMWs is intelligent enough to do that, you don't have to type the full street or city name as it resolves before that.

Unfortunately, the default state is "United States"

Sorry,

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I found the answer! Upgrade to Navteq Version 2007.2 and Nav software 29.1. Previously I was running version Navteq 2004.2 that came with my 2005 X5 4.4i. After upgrading to the latest BMW nav software (29.1) and Navteq maps (2007.2), I am now able to set a default State.

I can’t wait to see what other upgrades version 2007.2 has…

Clue the rest of us in - I'm running 29.1 and 2007.2 and mine resets itself to United States every time I finish guidance.

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Sorry for the delay. I was able to set the default in the State / Province? Option. Since upgrading to v29.1 and Navteq 2007.2 a new menu appears after selecting State / Province ?. The menu starts with Canada, then generic U.S. and finally lists all the States. My Nav now defaults to Illinois after selecting it from the menu. I hope this helps. Feel free to send me a message if you need more details.

Good luck.

Mine only stays on Massachusetts until I change the town, then it defaults to United States again...

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I switched the destination (within IL) multiple times and my Nav stays on IL (so far). Could your problem be related to what others have been posting – about Nav systems that “lose” last and saved destinations?