Description of problem: Something in RHN is passing full spelled out state names into User Service. Spelled out names (e.g. Ohio or Minnesota) should be turned into the 2 character representation (e.g. OH or MN). This should account for capitalization. Maybe you can validate against the address service first. I'm not sure how this would work for people who are registering from their workstation, we can discuss the best way to resolve this.
Creating a user from rhn_register is no longer supported, and creating frmo the webUI now goes through the UserService validator - I think this is no longer a problem. Closing as CURRENTRELEASE