The rumour is <i>true</i> - children need their own passports from October 1st. This is one of a few changes coming into effect on that date.
Everyone also needs a red passport with the swipe code on the Identification Page. Has all sorts of >> << type stuff on it - if your passport just has a big white space at the bottom of the page (when it's turned on it's side) then it isn't machine readable, and you won't be admitted.
Lastly, on the Visa Waiver Program, they were pretty relaxed about the information you put in on your first night stay address, but that is changing too. This will now be strictly enforced and you need to give an exact address including Zip Code and contact telephone number of where you are staying.
Hope that helps!