I had done this before for the Contacts module and I couldnt remember how I did it when I needed to now do the same for the State field in Leads.
I was going mad, because I knew it was a simple edit.
And then I found this post
http://developer.sugarcrm.com/2011/05/05/howto-change-a-dropdown-field-to-a-multiselect-field/
And jus tincase it goes away, basically I simply create a new php file in
custom/Extension/modules/MODULE_NAME/Ext/Vardefs/
with
<?php
$dictionary['Lead']['fields']['primary_address_state']['type'] = 'enum';
$dictionary['Lead']['fields']['primary_address_state']['options'] = 'USAState_list';
?>
quick repair and rebuild and viola. A dropdown state…
done.