I see the problem. I'm not sure why but in the general.php file the function that gets the dropdown countries was updated. (I see the old function still there, commented out.) The updated function doesn't work when it is call for the Zone Definitions.
Here's one way to fix it:
In the admin > includes > functions folder open:
general.php
Around line 786 (I do a lot of customization so the line # might be off) I have the commented out old zen_get_countries function. (commented out means there is a /* at the start and a */ at the end).
The function will start with:
/ function zen_get_countries($default = '') {*
And end with:
*return $countries_array;
} /
Remove the comments symbols (the /* at the beginning and the */ at the end) and change the function name to zen_get_countries_by_name. So change the first line to:
function zen_get_countries_by_name($default = '') {
If you don't see that function it might be gone, because some module that we've installed might have said to 'replace' the function. I'm more likely to comment out the function than fully replace it. If the old function is not there let me know and I will paste the whole thing.
One more file to change:
In your admin folder:
geo_zones.php
Find this text: zen_get_countries
and replace it with **zen_get_countries_by_name **
There should only be 2 replacements. One around 377 and 385.
Update these files to your server (remember to keep a unchanged version handy incase you make any mistakes!).
That should do it!
Good luck!
Christa