$s = 0;
foreach($states as $state):
   $list[$s]->id   = $state;
   $list[$s]->name = $state;
   $s++; 
 endforeach;

Now we have the list like we need it to be. Now on to the creating of the select list!

$default	= 'NC';
$field		= 'state';

$options 	= array();
foreach($list as $value):
  $options[] = JHTML::_('select.option', $value->id, $value->name);
endforeach;
 		
$select = JHTML::_('select.genericlist', $options, $field, 
'class="inputbox"', 'value', 'text', $default);
 		

As you see above, a variable for $default and $field. This is more if you want to set this in a function and have those variables passed into that function. I do it that way and it is the best way to go about using this, just create a creatSelect() function in your Model or Controller and you are good to go for the whole component! Saves lots of time, and only needs to be written once.

I set up the function to require 3 variables ($list, $default, $field).