Ok, This site says
We use would to refer to typical habitual actions and events in the past. This is usually a formal use and it often occurs in stories (narratives):
I had a friend from Albany, which is about 36 miles away, and we would meet every Thursday morning and she would help us.
Then he would wash; then he would eat his toast; then he would read his paper by the bright burning fire of electric coals.
However, it also says:
We can’t use would in this way to talk about states. In these cases, we say used to instead of would:
I used to live in Melbourne when I was a kid.
Not: I would live in Melbourne when I was a kid.
So, what does "to talk about states" mean?