Vaughn -
My understanding is that you must go into the "Policy Administration" utility, get to the appropriate "Domain" and "Access Control" table, and add the "Set State" permission for each Context, Type, State and Principle (group or user) you want to have such permission. If there are many of these it can be a tedious task for sure.
You didn't ask, but it might be a good idea to first review your Life Cycle Template and make sure it is set up to allow the transition from each state you desire. The Life Cycle Template defines the allowed state transitions IF permission is given. In other words, just because someone may have set state 'permission' doesn't mean they can change from the existing state to any other state they wish.
I probably didn't have the answer you are looking for which was is there an EASY way to do this? Maybe someone out there has an advanced or semi-automated way to do this, but the only way I know of is to make a list and manually 'update' each applicable line item, checking them off one by one.
Joe Lee
ICON Aircraft Windchill Administrator