Dined out to keep Virginia occupied (7)
I believe the answer is:
invaded
'occupied' is the definition.
('invade' can be a synonym of 'occupy')
'dined out to keep virginia' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'to keep' indicates putting letters inside.
'virginia' becomes 'va' (US state abbreviation).
'dined' is an anagram of 'inded'.
'inded' placed around 'va' is 'INVADED'.
(Other definitions for invaded that I've seen before include "Occupied" , "Marched agressively into another's teritory" , "Entered intrusively" , "Overran" , "Stormed" .)