Create a PhysicalAddress object and assign it back to the Customer Address property:
Intuit.Ipp.Data.Qbd.PhysicalAddress customerAddress = new Intuit.Ipp.Data.Qbd.PhysicalAddress();
customerAddress.Line1 = txtAddress.Text;
customerAddress.Line2 = txtAddress2.Text;
customerAddress.City = txtCity.Text;
customerAddress.CountrySubDivisionCode = drpState.SelectedItem.Value;
customerAddress.PostalCode = txtZip.Text;
qbdCustomer.Address = new Intuit.Ipp.Data.Qbd.PhysicalAddress[]{ customerAddress };
The same applies to the Phone and Email properties.