1. A method of encoding packet parsing states into bitmaps for determining next packet parsing states from current packet parsing states in a packet parsing processor, the method comprising: grouping a set of potential characters into subsets; representing each subset that contains one or more potential characters capable of causing a transition from a current packet parsing state to one or more next packet parsing states responsive to data related to a network packet with a bit in a current state bitmap indicative of the transition; storing the current state bitmap at a memory location representative of the current packet parsing state; and representing the one or more next packet parsing states with a plurality of memory locations.