I have set up various shipping zones and they all work fine except Europe. No European countries will appear in the country drop-down for the shipping address on checkout. The Europe shipping zone definitely includes the european countries.
Got a customer in Germany who wants to order so I'm focusing on that one country to isolate the issue. I tried deleting the European zone and just adding Germany to another shipping zone. If I add Germany to the Canada zone, the country list looks normal but Germany does not appear. If I add Germany to the "rest of the world" then none of the rest of the world countries appear. I'm very confused.