Border crossing between Canada and the U.S. tightened up after 9/11.. at least for crossing into the U.S. from Canada (I don't know if Canada has also tightened up on letting us in there). It was just too easy for anyone to cross over before.
Here's information on this topic from Transport Canada: http://www.youtube.com/watch?v=yZfbTlYpKYo
I have an "enhanced" driver's license which supposedly (I haven't tried it out yet) enables me to cross the border without a passport. There are a few other documents available that will also authorize Americans to do that.
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