Just a side note for the US Citizenship....your child most likely IS entitled to US citizenship, but the US does put some caveats on citizenship based on the parents residency in the US. I forget the exact parameters, but the parent has to have lived in the US for a certain number of years after the age of 12 or 14 or something like that. It's spelled out in the supporting documentation on the US Embassy's website. Unless you lived out side of the US for a long period of time during your teens, I am am sure it's nothing to worry about.
You can apply for the consular notification and passport at the same time, in person, at the embassy.