The Caribbean islands are divided by location. The Greater Antilles are the islands closest to the United States and include Cuba, Jamaica, Haiti, the Dominican Republic, the Cayman Islands and Puerto Rico. The Lesser Antilles or Eastern Caribbean include the U.S. Virgin Islands, British Virgin Islands, Anguilla, St Martin, St Maarten, St Barts, Saba, St Kitts and Nevis, Antigua and Guadeloupe. The Windward or Southern Caribbean includes Aruba, Bonaire, Curacao, Dominica, Martinique, St Lucia, Grenada, St Vincent and the Grenadines, Trinidad, Tobago and Barbados.
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Passport and Passport Card Requirements for Caribbean Travel
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For more information on the new passport regulations, please visit the U.S. State Department's website:
http://travel.state.gov/travel/cbpmc/cbpmc_2223.html

U.S. State Department
American citizens traveling by air between the us and canada, mexico, central and south america, the caribbean, and bermuda will be required to present a valid passport. This new regulation does not apply to us citizens traveling to or returning directly from a us territory in the caribbean. American citizens traveling by air to the us virgin islands and puerto rico are not considered to have left the united states.
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American citizens traveling to the U.S. Virgin Islands and Puerto Rico are NOT considered to have left the United States since both islands are U.S. territories - NO PASSPORT is required to gain entry to these two island chains, or to gain entry back into the U.S.
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The new passport card will cost $45 for people older than 16, and $35 for people younger than 16.
NEW PASSPORT CARD
Updated February 17, 2008
U.S. Passports Required for Caribbean Travel, or TWO pieces of ID listed below
As of Jan 31. 2008, the new cost of a passport for people older than 16 will increase $3, to $100. Passports for people younger than 16 will also increase $3, to $85.
A new Passport Card is in development by the U.S. Government, and will be ready for issue sometime this Spring or Summer.
This is a limited use travel documents, and can only be used to travel by land or sea travel to Canada, Mexico, Bermuda and the Caribbean islands. This new Passport Card CANNOT be used for air travel. 
Travelers can apply for the New Passport Card at their local post office, or any passport processing center - however as stated above the actual cards will not be issued until late Spring or early Summer of 2008.
Passengers currently wishing to visit Canada, Mexico, Bermuda or the Caribbean islands by land or sea currently are required to have a valid U.S. Passport to gain entry back into the United States, or TWO pieces of ID proving identity and citizenship. This rule for land and sea passengers will prevail until the new Passport Cards become available.  
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All American citizens traveling to the Caribbean by air are required to have a valid U.S. passport for travel, or TWO pieces of ID such as a drivers license, Government issued ID AND an original birth certificate - no copies.

This new passport law was passed in January, 2007, and there are NO exceptions to the rule.
As of January 31, 2008, any U.S. resident 19 and older will need to show border agents a passport, or a combination of TWO documents, such as a driver license and a original birth certificate. No oral declarations of citizenship will be accepted.

As stated above, when the new Passport Card is ready in the Spring 2008, this card will then serve as a valid travel document. 
Travel to the Caribbean by Air
Travel to the Caribbean by Sea
All American cruise passengers are required to have a valid U.S. passport, or TWO pieces of ID that prove identity and citizenship.
If you do not have a valid passport, and wish to cruise to the Caribbean, you will need a valid drivers license, Government issued ID, AND an original birth certificate - no copies will be accepted.
New Requirements for Crossing Borders of Mexico and Canada
A new Passport Card is in development by the U.S. Government, and will be ready for issue sometime this Spring or Summer. This is a limited use travel documents, and can only be used to travel by land or sea travel to Canada, Mexico, Bermuda and the Caribbean islands. This new Passport Card CANNOT be used for air travel. Travelers can apply for the New Passport Card at their local post office, or any passport processing center. The new passport card will cost $45 for people older than 16, and $35 for people younger than 16.
Cruise Passenger ID and New Pre Departure Requirements

As of Feb 18, 2008, all cruise passengers departing from U.S. ports must be on board at least one hour prior to sailing, a new pre-departure requirement of U.S. Customs and Border Protection.

Cruise ships are required to provide U.S. Customs and Border Protection a full passenger and crew manifest an hour before leaving port. So when flying into your port of departure, you should factor this new time frame into your airline flight schedule, as well as the time it will take you to get from the airport to the cruise port terminal.