I was able to get this working on my PowerStore by first editing the state select list on the registration full page. Here are the first three options from the state list on that registration page:
<option value="" selected="selected" <?php if (!(strcmp("", (ValidatedField("usersRegistrationfull","UserState"))))) {echo "selected=\"selected\"";} ?>>Choose a state</option>
<option value="N/A" <?php if (!(strcmp("N/A", (ValidatedField("usersRegistrationfull","UserState"))))) {echo "selected=\"selected\"";} ?>>N/A</option>
<option value="NSW" <?php if (!(strcmp("NSW", (ValidatedField("usersRegistrationfull","UserState"))))) {echo "selected=\"selected\"";} ?>>New South Wales</option>
Then on the profile page I added in the NSW value to the list so the first three options on that list are:
<option value="" selected="selected" <?php if (!(strcmp("", (isset($_GET['valid'])?ValidatedField("usersProfile","UserState"):$row_WAATKusers['UserState'])))) {echo "selected=\"selected\"";} ?>>Choose a state</option>
<option value="N/A" <?php if (!(strcmp("N/A", (isset($_GET['valid'])?ValidatedField("usersProfile","UserState"):$row_WAATKusers['UserState'])))) {echo "selected=\"selected\"";} ?>>N/A</option>
<option value="NSW" <?php if (!(strcmp("NSW", (isset($_GET['valid'])?ValidatedField("usersProfile","UserState"):$row_WAATKusers['UserState'])))) {echo "selected=\"selected\"";} ?>>New South Wales</option>
Adding in the NSW option was all that I did for both of these lists and when I register a new user and select NSW I see this reflected on the profile page. Please give this a try and use my example code on both the full registration page and your profile page to see if the same works for you.