Please just create a top-level block diagram for the entire design, showing the major modules and how they are interconnected. It should indicate all important signals and where they are connected. You can represent the clock signal going to a module by using the triangle (like on a D-flip flop) rather than drawing that wire everywhere.
If you try to design this as one big state machine, you will never get anything working. Instead, think about breaking it down into smaller pieces. We will help you with some ideas, but we STRONGLY advise putting together a block diagram of the system early in the design process.
You should use the 50MHz clock directly (pin CLOCK 50) to control the whole design -- we'll assume no player can press the button faster than 25 million times a second...
User Input
Since we are using a fast clock, each time the user presses a button the button will be ON for many cycles, and OFF for many cycles. However, you want to design a simple FSM that detects the moment the button is pressed -- its output is TRUE for only 1 cycle for every button press. This will handle all user input.
Playfield
There are 9 lights, which is too big to do as a single huge FSM. However, what about an FSM for each location? A given playfield light needs to know the following: Does it start as TRUE (the center LED) or FALSE? This could be an input to the module.
During play, it needs to know which button(s) were just pressed, whether its light is currently lit, and whether its right and left neighbors are currently lit.
Given all that data, plus the reset signal, it's now easy to figure out whether you should be lit during the next clock cycle.