I'm trying to remember what exactly I did to make that change. I believe that was it. Make sure you're moving the code to the correct spot because there's 2 "blocks" of code for the state. You should be moving the county code under this line:
Code:
{if ($reg_error ne "" and $userinfo.s_state eq "" and $default_fields.s_state.required eq 'Y') or $error eq "s_statecode"}<FONT class="Star"><<</FONT>{/if}
</TD>
</TR>
{/if}
Ah, just found this one. Check out /main/register_states.tpl.