You're right, the problem with the email field and address form was browser related and has resolved itself. However, after creating two test orders - one within Washington and another in Oregon (no tax) - sales tax was applied in both instances.
I did exactly this:
First, you need to go to System->taxes. Click on "manage tax categories", then "new" and create a new tax category.
Then, go back to System->taxes and click on the "manage tax rates" button, then the "new" button to create a new tax rate with the tax in your state.
Then, go back to System->taxes and click on "new" to create a new tax rule. You will limit it to your state, select your tax category and your tax rate and save.
Then for your products, you need to select the taxation category you created earlier and then their prices will be taxed based on your customers address.
Surely I am missing something, but I can't figure out what.
Paul