Hi alexmac (and others),
I live in NJ too, Jersey City specifically (right next to Hoboken!). To answer your question about children born in the US, the child of a Canadian citizen is automatically considered a citizen of Canada. (In actuality, the child would be a dual citizen of US and Canada.) In order to obtain the citizenship documentation, you need to fill out the "Application for a citizenship certificate from outside Canada" which you can find here:
http://www.cic.gc.ca/EnGLIsh/pdf/kits/c ... T0006E.pdfOnce you've completed this form (remember that you're filling it out for the child, not yourself), you need to send it along with a copy of the child's US birth certificate, the parent's proof of Canadian citizenship (i.e., passport) and the fee to the Canadian Consulate in NYC.
Hope that helps.