After a lot of research and phone calls, BAJABRENT has learned that the former January 1 2008, US passport requirment WILL NOT BE IMPOSED.  Rather, January 1 will have NO IMPACT AT ALL!  However, beginning on January 31, 2008, all USA citizens WILL NEED a Government Issued Photo ID (like a Drivers License) AND a copy of their birth certificate OR A passport to effectuate a land crossing.  

Although there has been no firm date set, for when USA Citizens will need a passport, both the US Senate and Congress have set a final deadline for JUNE 1 2009 extending the original deadline by 17 months.  Meanwhile DHS Secretary Michael Chertoff has suggested that a possible deadline may be implemented sometime in the summer of 2008, which many have suggested could be as early as June 1, 2008.  In any event the DHS will give at least a 60 day notice.  But even President Bush has signed legislation authorizing the June 2009 extension. 

Bajabrent,  spoke with Colleen Manaher, the Director of Field Operations for US Customs and Border Protection in Washington DC.  She is in charge of implementing the aformentioned changes and confirmed the January 1 postponement. Likewise she confirmed the interim the January 31 requirement of the birth certificate (and photo id).  She stated that June 1, 2008 was the new "goal" deadline, but that nothing was yet certain. She urged Bajabrent (after a mutual chuckle over the name), to contact Arnold Schwartznegger, Governor of California, and urge him to effectuate a new drivers license card that contains encyrpted passport information so as to eliminate the need of a paper passport or even a PASS card itself. 

For more information see: http://travel.state.gov/travel/cbpmc/cbpmc_2223.html  
 http://www.dhs.gov/xnews/releases/pr_1182350422171.shtm