Ok, so when you are creating the second dynamic array you are able to have both on the page at once correct?
If you have the create dynamic arrays and populate list from arrays on the page then that part should be ok. You may be experiencing a problem with the relationship of the countries to the states. How do you have this relationship defined in your db?
If you could post back with the three tables in an sql file I could check on it and do a test to help determine what the problem may be.