There's a CB plugin that provides this, but I have no idea where to find it. A few users have stated it works fine and is Ajax based so is what you're wanting, but I can't recall what it is. I recommend searching forums or maybe checking 3rd party development forums.
This can be done with CB Conditional, but you'll need a state field for every country and a city field for every state.
It's possible I may explore developing such a plugin, but for now I've too many projects to maintain as is. Once all incubator projects have been upgraded and bug fixed I'll likely take on more projects and have made a note to explore such a fieldtype plugin.
Kyle (Krileon)
Community Builder Team Member
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