You can redefine \p@figure to produce the desired formatting (but this will only change the formatting of the string used for cross-references; the string used for captions will remain unaltered):
\documentclass{book}
\makeatletter
\renewcommand\p@figure{\thechapter-\arabic{figure}\expandafter@gobble}
\makeatother
\begin{document}
\chapter{Test Chapter}
See figure~\ref{fig:test} in section~\ref{sec:test}...
\section{test}\label{sec:test}
\begin{figure}[!ht]
\caption{Test Figure}
\label{fig:test}
\end{figure}
\end{document}

And combining this with the cleveref package, you can say something like this:
\documentclass{book}
\usepackage{cleveref}
\makeatletter
\renewcommand\p@figure{\thechapter-\arabic{figure}\expandafter@gobble}
\makeatother
\crefname{figure}{figure}{figures}
\Crefname{figure}{Figure}{Figures}
\begin{document}
\chapter{Test Chapter}
See \cref{fig:test} in \cref{sec:test}...
\section{test}\label{sec:test}
\begin{figure}[!ht]
\caption{Test Figure}
\label{fig:test}
\end{figure}
\end{document}

Remarks:
- I only used
[!ht] as placement specifier just for this example; I am not recommending its usage.
- As a personal opinion, this style introduces some level of inconsistency since we are referencing object
x.y using a different string x-y. I would suggest you to reconsider this change.
For consistency's sake, I would prefer to change \thefigure so the strings used in the object numbering and the one used in the cross-reference will be the same:
\documentclass{book}
\usepackage{cleveref}
\makeatletter
\renewcommand\thefigure{\mbox{\thechapter-\arabic{figure}}}
\makeatother
\crefname{figure}{figure}{figures}
\Crefname{figure}{Figure}{Figures}
\begin{document}
\chapter{Test Chapter}
See \cref{fig:test} in \cref{sec:test}...
\section{test}\label{sec:test}
\begin{figure}[!ht]
\caption{Test Figure}
\label{fig:test}
\end{figure}
\end{document}

figureobjects already numbered4-1,4-2,4-3, etc (where4is probably the chapter number, correct?), or are they currently numbered as4.1,4.2,4.3., etc? At any rate, you should have a look at thecleverefpackage, which provides nearly unlimited possibilities for low-level controls over the names and numbers used in cross-references. – Mico Aug 11 '12 at 00:21x.y. What I need is to have sections referenced likex.xand figures referenced asx-y. – stratis Aug 11 '12 at 00:27x.ytox-y? If you don't reset the numbering system, your readers may become confused by a figure's caption being numbered inx.ystyle but then being cross-referenced inx-ystyle. – Mico Aug 11 '12 at 02:36