Okay, I am a co-op student and i worked in Birmingham,AL and went to school in Mississippi, according to what I have filled out so far it looks like I have to Pay tax for both States which seems wrong. In the past I got a refund from Georgia and payed tax to Mississippi. my total from the W-2 was 16K...can anyone help me?...I know that I have to claim residency in Mississippi...and I am trying to use the 40NR for Alabama?

" . . . I know that I have to claim residency in Mississippi...and I am trying to use the 40NR for Alabama? "---> Yes; (if)your home state is Mississippi ,and now you live and work in AL, out of state. So, you typically need to file 40NR FORM, a non-resident income tax return, with the state of AL. However, you usually will get a credit for income taxes paid to other states on your home state tax return.
"In the past I got a refund from Georgia and payed tax to Mississippi. . . "---> Exactly identical situation as said above; as you lived and worked in the State of GA, so you paid State taxes to the State and got your tax credit on your home state tax return.