Re "i have 2 different interest entries in schedule B. One for box 3 which includes accrued interest adjustments and one for box 8"
do you mean on Schedule B (Box 8 interest would not appear here), or on your 1099-INT.
I'm still not clear if you split the 1099-INTs and if you have Box 3 and Box 8 together with any accrued interest you will definitely get incorrect results. Try entering a new 1099-INT from fresh with just Box 3 and just the accrued interest for the Treasuries nothing else and see if you get the correct result on both Fed and State. If that works then delete the old 1099-INT(s) and enter Box 8 on a separate 1099-INT.
If that doesn't work I'm out of suggestions.
