Well, it's like creating 3 separate parameters but they work as one. If you create the parameter as I previously explained it should work properly.
Just in case it wasn't clear before:
1. Right-click Parameter Fields and select New.
2. Name the parameter and change List of Values to Dynamic.
3. In the Value column, click 'Click here to add item'. Select your state field then in the Parameters column click 'Click to create parameter'.
4. In the Value column in the second row, click 'Click here to add item'. Select your county field then in the Parameters column click 'Click to create parameter'.
5. In the third row select your city field and create the parameter.
6. Change any Value Options (you can do this for each of the parameters by selecting them from their rows and changing their options. Notice that as you select a value the Value Options changes from Level 1, Level 2 and Level 3.
7. Click OK. You now have three parameters that all start with the name you designated to the whole dynamic parameter. They come across as three separate fields but they act as one and will work in a cascading effect.
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