Hurricane Earl's powerful winds and lashing rains began hitting the fragile Outer Banks late Thursday, and people all along the Eastern Seaboard braced for major disruptions and significant damage as the massive storm swept up the coastline. Earl's winds had weakened from 140 to 105 mph by 11 p.m. Thursday, downgrading it to a Category 2 hurricane, and could ease further as the storm crossed cooler water in approaching the North Carolina coast. But the hurricane was still strong enough to cause widespread destruction as it made its closest approach late Thursday and early Friday, officials said. "It's still a major hurricane. It's nothing to sneeze at," said David Feltgen of the National Hurricane Center in Miami on Thursday afternoon. "It's going to be a bad night." The weather had noticeably worsened by 10 p.m., but by then, residents had learned that the storm had weakened and appeared more likely to stay offshore - raising hopes among the hardy few still in Nags Head that the oceanfront community might avoid a pounding. The hurricane experts in Miami predicted the area would experience a storm surge of three to five feet but added that Earl's impact would depend on how close the storm came to land. A late veer closer to land - or even onshore - could trigger widespread flooding, power outages and damage to boats, piers, business, homes and beaches. Earl is the most powerful hurricane to emerge this year and the most-threatening hurricane to the East Coast since Hurricane Bob in 1991. "The message today is this is a day of action," said FEMA Administrator Craig Fugate. "Conditions are going to deteriorate rapidly. Many people will start out with clear skies, but we expect conditions along the East Coast will deteriorate. People should not be lolled into a false sense this will be steered away from them. Time will be running out for people who have not gotten ready." After the storm passes North Carolina, Earl is expected to sweep further off the coast and weaken slightly, perhaps becoming a tropical storm. But tropical storm-force winds of 40 to 75 mph would still probably lash many areas, including New York resort towns on Long Island and coastal areas in Maryland, Delaware, New Jersey, Connecticut and Rhode Island. Officials were especially concerned about southeastern Massachusetts, in particular Cape Cod and the resort islands off Nantucket and Martha's Vineyard. A hurricane warning was issued for the area.