I don't trust the translations much at all. Even in the case of the tape which was released by the American terrorist Adam (Can't remember the last name starts witha G) about the blood running in the streets and dwarfing 9/11. He spoke in english and clearly used the name "Allah", however, in some of the transcripts I've read the name was changed to "Lord". Gives an entirely different flavor to the threat.
Having said that I have no idea of the intent of UBL's usage of the term that was translated "state". The only thing I'm certain of is the guy is pretty much impotent and has been reduced to recorded messages and threats. If he could have duplicated Spain I have no doubt he would have done so. GWB has done an excellent job of dismantling AQ's leadership. Hopefully UBl's little pre election greeting will turn more of those states bright red.