Please bear in mind 1) that the idea is to avoid a huge fight w/ the interviewer and 2) Hawaii is part of the US (50 th state of the union). How would you handle and interviewer who said: "I see that you were born in Hawaii and that you moved to the United States at age 4."

Is there any way to tactfully correct the interviewer. Any suggestions would be appreciated.Thanks.

Just keep your mouth shut. The interviewer might feel stupid which he is and therefore will not hire you because you already showed that you know that he is stupid. and he would like to stay concealed.

I would say "yes, I moved to the mainland then".

But why does an interviewer even know where you lived when you were 4? That's really wierd!
It's not something that should be included in a resume, cover letter, or application.