<p>So, I was reading the Google testing blog, and it says that global state is bad and makes it hard to write tests.  I believe it--my code is difficult to test right now.  So how do I avoid global state?</p>

<p>The biggest things I use global state (as I understand it) for is managing key pieces of information between our development, acceptance, and production environments.  For example, I have a static class named "Globals" with a static member called "DBConnectionString."  When the application loads, it determines which connection string to load, and populates Globals.DBConnectionString.  I load file paths, server names, and other information in the Globals class.</p>

<p>Some of my functions rely on the global variables.  So, when I test my functions, I have to remember to set certain globals first or else the tests will fail.  I'd like to avoid this.</p>

<p>Is there a good way to manage state information?  (Or am I understanding global state incorrectly?)</p>

Dependency injection is what you're looking for. Rather than have those functions go out and look for their dependencies, inject the dependencies into the functions. That is, when you call the functions pass the data they want to them. That way it's easy to put a testing framework around a class because you can simply inject mock objects where appropriate.
It's hard to avoid some global state, but the best way to do this is to use factory classes at the highest level of your application, and everything below that very top level is based on dependency injection.
Two main benefits: one, testing is a heck of a lot easier, and two, your application is much more loosely coupled. You rely on being able to program against the interface of a class rather than its implementation.