Is a Passport needed for travel to Canada?

I live in the U.S. an was told that in 2008 a Passport would be needed in order to travel to Canada is this true?

Yes. You have to have a passport to travel anywhere outside of the USA.

Pretty soon you will have to have a passport just to travel from state to state (that goes into effect next year), so it's a good idea to go ahead and get the passport right now.

you only need a passport NOW if your FLYING into the US from canada.
However, if you are driving (car,bus or rail) you only need a birth certificate and government issued photo id (DRIVERS LICENSE) to cross the border.
This changes in mid-2009 when you will need a passport when entering the US from Canada by ground too.

for sure

Passports are needed now to fly between U.S. and Canada. They are not needed for land travel. See site below to read law for yourself.

The current rules are in effect until June 1, 2009. Presently the rules relate more to travel into the US than travel into Canada. However, since you have to return home, you will find that Canada enforces these rules generally. For travel into the US (or out of if by air):

By Air: A Valid Passport

By Land: Government issued photo ID (i.e. a Driver's License) and an official birth certificate; OR; a valid passport. If you are under 19 then only an official birth certificate is required however if you have a photo ID I strongly recommend you bring it as well.

By Sea: Same as for land

Effective June 1, 2009 (subject to change) only a valid passport, passport card, NEXUS Card, or enhanced Driver's License will be acceptable for any cross border travel.

I recommend getting a passport as if you plan on any travel in the future it will be the best form of ID to use. I have been using my passport for a number of years even when crossing into the US by land.

Ye because they are two separate countries.