Hi Bob

I have dealt with a similar situation for one of my clients. They offered same service at 2 different states and also they had a 3rd site for their educational site.

They worked with a company that had over 20 domain names forwarding in each address and created confusion. So we basically build one site http://www.adaptivemobility.com/  and we forwarded the 2 existing domains to the interanl pages of the site http://www.adaptivemobility.com/indiana/ and http://www.adaptivemobility.com/florida/ .

This worked for our client  and made it easy to promote as they usually send everyone now to their main site. But all other sites that linked to the old URls still link to the internal pages. I hoped the link will help you decide on what to do. I also agree with just having a translation option build in.