Hi,
It seems like a software issue. I had fairly a similar situation where TurboTax would not let me e-file it. It went into a loop saying "Check for updates and re-file", many times over. With no know help from TurboTax, I downloaded the state again (Go to Online, in the drop down menu, select Download State." after downloading the state (it did not affect my state data), I was able to e-file with no additional problems. Hope this helps, although the problems are not exactly the same.
