I'm in a state, seeing spirit (9)
I believe the answer is:
animation
'spirit' is the definition.
(thesaurus)
'i'm in a state' is the wordplay.
'in' is an insertion indicator.
'state' becomes 'nation' (synonyms).
'a'+'nation'='anation'
'im' going inside 'anation' is 'ANIMATION'.
'seeing' is the link.
(Other definitions for animation that I've seen before include "Liveliness - illusion of movement in cartoon films" , "Vigour; film technique" , "Film technique; lively state" , "See 6" , "(State of) being full of life" .)