if memory serves me right (and I may be slipping a little here)... you need a CERTIFIED birth certificate.... some states, like Virginia, don't have raised seals any longer, but as long as it's CERTIFIED, you're good to go..
we're thinking of getting passports too, my daughter is considering going on a Panama Canal cruise with some of her friends, so to be on the safe side, we might as well get the passports now, so she'll have it if she does go..