I am a USC and gave birth abroad. I did a consular report of birth and my son has US citizenship, US passort, and a social security number. I lived most of my life in the US, but have been abroad since 2006. Here is a link with info: http://travel.state.gov/law/family_issues/birth/birth_593.html
It was easy to do. I did it when he was 2 months old, and it only took 1 day. We made an appointment at the US embassy and brought the necessary proof and forms, and that was it. I think it was that you have to have lived in the US for at least 5 years after age 18. I brought my college transcripts to prove that, and then just my proof of citizenship (US birth certificate).
Congrats on your baby!
:-) Jules
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