Okay guys, I have some experience in this department. I grew up in Louisiana, and I was there for all the recent major storms (Lily, Katrina, Rita, Gustav, etc.). All of those were stronger than Irene is now, and it will be a Cat 1 by the time it reaches us. It's basically going to be a really, really bad thunderstorm.
Also, it appears to be turning pretty heavily east. Yesterday the projected path had the eye basically passing over my house (I live in Jersey City for reference, just past the Newport Mall, roughly a mile off of the river), today the eye is projected east of Nassau.
Don't worry friends. There will be damage, there will be power outages, but this is hardly the storm of the century.