This has an error way down at the $result=mysql_query($query) line.

Anyone knows whats up? Or could it be my login info? Is localhost bad?

<?php 
/* grabs the POST variables and puts them into variables that we can use */ 
$email=$_POST['email']; 
$city=$_POST['city']; 
$state=$_POST['state']; 

//---------VALIDATION--------> 
    if($email){//----> CHECK input 
        } 
        else{ 
            $error.="Please, go back and fill out your e-mail address<br>\n";//----> ERROR if no input 
            } 

    if($city){//----> CHECK input 
        } 
        else{ 
            $error.="Please, go back and fill out your city name<br>\n";//----> ERROR if no input 
            } 
//-------->ERROR FREE?? 
    if($error==""){ 
        echo "Thank you for subscribing! A receipt of your submission will be e-mailed to you almost immediately."; 
//---------------------------------- 
$mailContent="--------CONTACT--------\n" 
            ."E-mail: ".$email."\n" 
            ."City: ".$city."\n" 
            ."State: ".$state."\n";
//---------------------------------- 
$toAddress="subscribe@whatsupinnh.com"; /* change this! */ 
$subject="Subscription"; /* change this! */ 
$recipientSubject="You are subscribed to the Whats Up In NH newsletter."; /* change this! */ 
$receiptMessage = "Thank you for joining WhatsUpInNH.com's Newsletter!\n\n\nHere is what you submitted to us:\n\n" 
            ."--------CONTACT--------\n" 
            ."E-mail: ".$email."\n" 
            ."City: ".$city."\n" 
            ."State: ".$state."\n";
//---------------------------------- 
mail($email, $subject, $receiptMessage,"From:$toAddress"); 
//---------------------------------- 
mail($toAddress,$recipientSubject,$mailContent,"From:$email"); 
//--->echo $mailContent; 

////////////////////////////////////////  CONNECT TO MYSQL DB  //////////////////// 
// OPEN CONNECTION ---> 
$connection=mysql_connect("localhost","[B]mylogin[/B]", "[B]mypassword[/B] ") or die("Unable to connect!"); /* change this! */ 

mysql_select_db("[B]database[/B]") or die("Unable to select database!"); /* change this! */ 

//  EXECUTE QUERY ---> 
$query="INSERT INTO generalContact (  
            email,  
            city, 
            state;
        VALUES( 
            '".$email."',
            '".$city."', 
            '".$state."';
//////-----> 
$result=mysql_query($query) or die("Error in query:".mysql_error()); 
//if ($result) 
    //echo mysql_affected_rows()." row inserted into the database effectively."; 

//  CLOSE CONNECTION ---> 
mysql_close($connection); 

/////////////////////////////////////////////////////////////////////////////////// 
        } 
    else{ 

            print "Sorry, but the form cannot be sent until the fields indicated are filled out completely - <br>\n"; 
            print "$error<br>\n"; 
            print "<br>\n"; 
            print "<br>\n"; 
            print "Please use your \"Back\" button to return to the form to correct the omissions.  Thank you.<br>\n"; 
        } 

?>

what does the mysql_error tell you is happening?

Wrong

$query="INSERT INTO generalContact (  
            email,  
            city,
            state;
        VALUES(
            '".$email."',
            '".$city."',
            '".$state."';

Correct

$query="INSERT INTO generalContact (  
            email,  
            city,
            state)
        VALUES('$email', '$city', '$state')";

Your corrected source code

/* grabs the POST variables and puts them into variables that we can use */
$email=$_POST['email'];
$city=$_POST['city'];
$state=$_POST['state'];

//---------VALIDATION-------->
    if($email){//----> CHECK input
        }
        else{
            $error.="Please, go back and fill out your e-mail address<br>\n";//----> ERROR if no input
            }

    if($city){//----> CHECK input
        }
        else{
            $error.="Please, go back and fill out your city name<br>\n";//----> ERROR if no input
            }
//-------->ERROR FREE??
    if($error==""){
        echo "Thank you for subscribing! A receipt of your submission will be e-mailed to you almost immediately.";
//----------------------------------
$mailContent="--------CONTACT--------\n"
            ."E-mail: ".$email."\n"
            ."City: ".$city."\n"
            ."State: ".$state."\n";
//----------------------------------
$toAddress="subscribe@whatsupinnh.com"; /* change this! */
$subject="Subscription"; /* change this! */
$recipientSubject="You are subscribed to the Whats Up In NH newsletter."; /* change this! */
$receiptMessage = "Thank you for joining WhatsUpInNH.com's Newsletter!\n\n\nHere is what you submitted to us:\n\n"
            ."--------CONTACT--------\n"
            ."E-mail: ".$email."\n"
            ."City: ".$city."\n"
            ."State: ".$state."\n";
//----------------------------------
mail($email, $subject, $receiptMessage,"From:$toAddress");
//----------------------------------
mail($toAddress,$recipientSubject,$mailContent,"From:$email");
//--->echo $mailContent;

////////////////////////////////////////  CONNECT TO MYSQL DB  ////////////////////
// OPEN CONNECTION --->
$connection=mysql_connect("localhost","[B]mylogin[/B]", "[B]mypassword[/B] ") or die("Unable to connect!"); /* change this! */

mysql_select_db("[B]database[/B]") or die("Unable to select database!"); /* change this! */

//  EXECUTE QUERY --->
$query="INSERT INTO generalContact (  
            email,  
            city,
            state)
        VALUES('$email', '$city', '$state')";
//////----->
$result=mysql_query($query) or die("Error in query:".mysql_error());
//if ($result)
    //echo mysql_affected_rows()." row inserted into the database effectively.";

//  CLOSE CONNECTION --->
mysql_close($connection);

///////////////////////////////////////////////////////////////////////////////////
        }
    else{

            print "Sorry, but the form cannot be sent until the fields indicated are filled out completely - <br>n";
            print "$error<br>n";
            print "<br>n";
            print "<br>n";
            print "Please use your "Back\" button to return to the form to correct the omissions.  Thank you.<br>\n";
        }
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