You guys who take your citizenship for granted are soooooo lucky. This sort of stuff happens all the time to those not lucky enough to have been born here. And yes, it is incredibly unfair. (And sometimes it happens to people who were born here - if they have name inconsistancies, missing birth records and deceased parents).
Me and my daughter are easy. Both born here to US citizens, our birth certificate gets us on a cruise no problem. Getting passports was easy. And now that birth records have been computerized in our state, even easier.
My husband (like someone else here) was born aboard to US Citizen parents. He has a state department issued "Counselor Report of Birth" This is the funkiest looking official piece of paper I've seen (it doesn't look official at all, looks like someone typed out a form - which they did_ and is apparently very difficult (takes a year or longer and is expensive) to replace, and the State Department (the Federal Agency that issues passports, your Secretary of State is completely different and does nothing with passports) will only accept an original. We had it (fortunately) and got him a passport - much easier to replace and much better proof of citizenship. I had my doubts about the piece of paper - forty years old, torn and stained. I'd recommend anyone who has one of these things get themselves a passport before your proof of citizenship disintigrates in a drawer. Whoever asked, you may be able to travel on it, but leave it in a taxi in the Bahamas and you may be buying yourself a lot of trouble that $85 will solve now.
My son is a naturalized citizen and an international adoptee. A few years ago a law passed that makes these kids automatic citizens, but before that, kids would grow up their entire lives here believing they were citizens, but if their parents had forgotten to naturalize them through INS (a lengthy and expensive process) they weren't. Some of these kids went through years of red tape and pain to prove themselves citizens (and some have given up, they just don't leave the country). There was a case a few years ago where an 18 year old kid was thrown out of the country and back to Columbia (where he knew no one and didn't speak the language) for minor drug possession. When we went to get my son his passport, we fed ex'd documents back and forth for two weeks until the State Department was satisfied (and he was naturalized before the law passed - and we sent his naturalization certificate - which should have been enough). (They didn't ask for his Korean passport - I still have it. Did have to give up his green card when we naturalized him. But I know the tight knot you carry while that certificate is in the hands of the State Department).
We all breathed a sigh of relief to get our passports - something that had been on my to do list for my son and husband for a while.
To the OP, best of luck. I hope your congressman can figure out some way to quickly prove you are a citizen.