I want to note that where Martin Ferguson Smith gives "states" in the translation, the Greek is κατασ̣τήμασι and καταστημάτων, that is katastēmasi and katastēmatōn.
Do you have a recommendation how to translate this section smoothly where Ferguson instead gives "states"? (Let us first discuss states...)
"States" isn't a bad choice as it tries to convey a stable condition rather than something in flux, something moving. I will say I don't like "static" as that to me conveys ossification and rigidity. In the past, I've written "It comes from καθιστημι according to LSJ with connotations like restore, return, set in order, etc. So it's not a static state, it's a return to order (ataraxia and aponia) after the 'excitement' of euphrosyne and khara."
But you asked for a translation of the section. To be specific, κατασ̣τήμασι is a plural dative and τῶν καταστημάτων is the plural genitive of κατάστημα "state, condition; which is related to καθίστημι. Check out that link for the numerous connotations of that word, including bring down to a place; replace, restore; set in order, array, of soldiers; bring into a certain state; etc. This is why translation is so tricky. Words have semantic contexts to a speaker of that language that can be completely missed by simple substitutions from language A to B.
But that's never stopped me before 
, so here's my crack at the first sentence of the Greek (Oh my! I am rusty!)...
ἡμ[εῖς δὲ ζη]τ̣ῶ̣μεν ἤ̣δ̣η πῶς ὁ βίος ἡμεῖν ἡδὺς γένηται καὶ ἐν τοῖς κατασ̣τήμασι καὶ ἐν ταῖς πράξεσιν.
So, let us now consider what stable conditions and what actions produce the sweet, pleasant life for us.
Well said. THAT for me is the most basic fundamental doctrine in Epicurus' physics. That's the foundation stone upon which fear of the gods and anxiety of punishment after death are dispelled. THAT'S the non-negotiable point for me. Epicurus fleshes out that point, but that's what it gets built on and what it comes back to.