Correct Country, but states do not change

[thegage]

I have a feeling that this shouldn't be as hard as I'm making it, but for some reason when I select say Canada as a country in the registration process for my store, the states remain as the default list of American States. Is there an easy way to have to states dropdown change dynamically based on country selection, or at very least an easy way to configure the default state dropdown to contain Canadian Provinces?