The hurricane is now a Category 2 storm, packing winds of 100 miles per-hour.
A hurricane warning was in effect for the southern coast of Texas from Brownsville to Corpus Christi and in Mexico from Rio San Fernando northward.
In Mexico, fields are filling with water, palm trees are bending over in the wind and beaches are closed. In Texas, early reports say the storm has damaged an apartment complex on South Padre Island, and knocked out electricity to thousands.
Landfall is expected around midday. Forecasters warn that Dolly could bring up to 15 inches of rain. The big concern is the downpour that could lead to flooding and breach levees in the heavily populated Rio Grande Valley. 
Watch raw video as dolly pushes ashore
(Copyright 2007 by The Associated Press. All Rights Reserved.)