I am looking into becoming either a medical transcriptionist or a legal transcriptionist. Does anyone know which would be the better choice for the state of Kentucky where I live, as far as earnings, work potential, and so on? Any advice/experience would be appreciated!

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Yes, for medical transcription, you should undergo training for at least three to four months whereas for legal just one week is enough, but opportunities are more for MT. 100:5 ratio MT/legal transcription companies are there. MT companies are more. Depending on your background, you can chose.
Medical transcription at medical facilities are very limited at this time. There are far more opportunities in the legal profession especially for legal transcribers using Microsoft Office Works, Excel, PowerPoint, and Outlook. The new occupational title is "Legal Document Specialists," and there is great demand for entry level Document Specialists.
Good luck!
Medical transcription training probably takes longer than legal training, because you are essentially learning a new "language". I don’t know about the legal profession, but many medical transcriptionists work from home — after they have gained enough experience.
Tons more info on the website below, including job listings.