Momentum and position eigenstates
are axes in Hilbert space, each one forming a different "basis". It's like how in 3D space you can have coordinate system #1 made up of x-y-z axes, as well as coordinate system #2 made up of x'-y'-z' axes pointing in different directions, and you can use either coordinate system to describe points and vectors in that space.
If two observables commute (like position and spin), then one meaning of that is that in terms of the Hilbert space, you can find a set of basis vectors such that each vector is an eigenvector of
both those observables. If they don't commute, then an eigenvector of one will be a superposition of different eigenvectors of the other, and vice versa. So, another way of stating the preferred basis problem is that you have to pick a
complete set of commuting observables as your basis, if the vectors are position eigenvectors (definite position states) then they won't be momentum eigenvectors (each vector will be a superposition of different momentum states) and vice versa.
A more intuitive physical meaning of commuting vs. not commuting is that that if two observables commute, you can measure one without disturbing the value of the other--if you measure position, then immediately after that (a negligible time interval) measure spin, then immediately after that measure position again, then if the time between measurements is arbitrarily small the second position measurement will be arbitrarily close to the first one (in the limit as the time goes to infinity the change in position goes to zero). But if you measure position, then immediately measure momentum, then immediately measure position again, then no matter how small the time intervals the probability distribution for position will be significantly changed, by an amount which can be calculated from the position/momentum uncertainty relation.