need help in $ajax->observerField

I have a ajax application form , i need to add state country select
boxes to it (again using ajax)

in my view file every thing goes fine if i use

///apply.ctp
echo $form->create('User');
echo $form->select('country_id',array($countries),null,array
('id'=>'countries'),false);
echo $form->select('region_id',array(),null,array
('id'=>'regions'),false);
echo $ajax->observeField('countries',array
('url'=>'update_region_select','update'=>'regions'));

but nothing gets updated in state if i am using

//apply.ctp
echo $ajax->form();
echo $form->select('country_id',array($countries),null,array
('id'=>'countries'),false);
echo $form->select('region_id',array(),null,array
('id'=>'regions'),false);
echo $ajax->observeField('countries',array
('url'=>'update_region_select','update'=>'regions'));

is it possible to do this anyway, Please help, Thanks

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