OK, so after some discussion with Nils Millahn I have cut down the functionality for my first release of Domino.

Domino will build and inject the StateMachine and add these additional functionalities:

1) the ability to define custom States in the XML markup

2) two additional notifications:

3) the ability to declare a command in the XML to be executed at each stage of the state transition cycle.

4) the ability to declare state specific notifications in the XML to be send at each stage of the state transition cycle.

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the XML:

<state name={STATE_EDITING} classpath="my.custom.State"/>
<transition action={ACTION_DISPLAY} target={STATE_DISPLAYING}>
   <entered note="editing/entered" cmd="my.commands.EnteredCmd"/>
   <entering.guard note="editing/enteringGuard" cmd="my.cmds.EnteringGuardCmd"/>
   <exiting.guard note="editing/exitingGuard" cmd="my.cmds.ExitingingGuardCmd"/>
   <cancelled note="editing/cancelled" cmd="my.cmds.CancelledCmd"/>
   <tear.down note="editing/tearDown" cmd="my.cmds.TearDownCmd"/>
</state>

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So at the moment I've given it to a few people to have a look at it to give feedback, and when I'm happy will upload it to my google.code site.

Oh and please feel free to leave your own suggestions :)