I've only begun to play with Filemaker's new graphing tools so will pass on that part for now.
"How do I get FMP to associate certain states with certain regions ex. MS, TN, AR (Southern Region) etc."
Define a table with two fields;
Field 1: Postal 2 letter code for state (and some other regions like District of Columbia).
Field 2: Region
Link this table to your current table by 2 letter state code and you can associate all your records to specific regions.
In a summary report, you can add this field 2 to a layout based on your original table and include a subsummary part to group records by region. Summary fields can then compute counts and sub-totals for each such region.
Here's a link to a simple tutorial on setting up summary reports that you may find useful:
Creating Filemaker Pro summary reports--Tutorial
Thank you for the response. I will follow your instructions and create the tables and fields. This is an excellent starting point for me.