Also keep in mind that you have to be considered a resident at the time of application to be considered a resident for admission purposes. I could have gotten a job in Texas this past summer and submitted an application to TMDSAS for the class of 2011, but I still would not have been a resident for admission purposes. I would have thus have had to wait for the class of 2012 cycle to get resident consideration.
My current school is in the midwest, and just like my birth state, the requirements to become a resident for educational purposes are very strict.
UT-Southwestern was extending in-state tuition to the butt-kickers who were accepted out-of-state last year, but the tough part about residency is not the tuition but the admission consideration. My wimpy white male 32R was just too weak as a non-resident.
Also, in some parts of the country, they are so underserved in rural communities that they want to make sure that you really are a resident with appropriate ties before they will consider you regardless of legal or assigned status. I am a classic example--I declared and was granted in-state status in the state that I grew up in despite being estranged from it for eight years. However, when it came time for the adcom to interview me, all they wanted to talk about was how I wouldn't really want to practice there. A 32R was quite strong for a resident there, but I didn't get in that cycle--not even waitlisted.
I am actually the only person I know who advocates for moving somewhere just to establish residency (I almost did just that this past summer), but the reason is because I have lived in relatively weak states as far as reputation and quality of education are concerned. I also think that paying out-of-state tuition at any school for any reason is a serious waste of money now that tuition is so high these days.
Should I breed someday, I will probably make my home in a state like Texas, California, Michigan, or Virginia just to give my kids a better shot than I had.