Passports will be required for returns from Mexico, Canada and the Caribbean as of Jan 1, 2007. Might as well bite the bullet, beat the crowds and apply for it now.
I just turned in my passport info. yesterday, i walked in the office thinking i had beaten the crowd and WOW! it was jam packed with people, i was told that everyone is trying to beat the end of the year deadline and they said it is only going to get worse so i am going to get my daughter down there to get hers ASAP. I will be cruising to the caribbean this year but also need it because i live in California and we walk over the Mexican boarder to go shopping a few times a year. I guess i wasn't the only one with the bright idea of getting the passport over with.