Hi
I was in US from 01/01/2006 to 10/06/2006 on H1 status. For first 8 months I was in Minnesota and then for my last 2 months I was in NJ. While filing my state tax return for NJ do I fill 1040 or 1040NR as I was in NJ for less than 2 mnths living with my friend in rented aptmt.

Please help

You can get by filing as a non-resident for NJ due to the short duration of your stay.

File as a part-year resident for MN.

But the NR form asks me my Resident state and it does not have foreign in the options (doing online filing) should I put MN as my residency state?

Yes.