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The NHC said Gustav's winds could bring "extremely dangerous" storm surges. Isolated tornadoes are also possible in the area.
The exodus from the Louisiana coast is said to be the largest evacuation in state history.
Most people have left the city for safety with only 10,000 residents left from a population of 200,000. Tens of thousands are also reported to have left coastal Mississippi, Alabama and south-eastern Texas.
The storm has already claimed the lives of more than 80 people in the Caribbean, causing widespread damage in Haiti, the Dominican Republic and Jamaica over the past week.
In Cuba, the storm brought extensive flooding and some severe damage, but no reports of deaths.
Few remain
Louisiana Governor Bobby Jindal issued a final plea on Sunday to those who decided to stay and ride out the storm.
Federal Emergency Management Agency spokesman, Harvey Johnson said: "We don't expect the loss of life, certainly, that we saw in but we are expecting a lot of homes to be damaged, a lot of infrastructure to be flooded, and damaged severely."
In New Orleans, a dusk-to-dawn curfew is in force. The 7,000-strong Louisiana National Guard has been mobilized and support requested from other states.
Crime was a major problem in the New Orleans area in the aftermath of Hurricane Katrina, which hit the city three years ago, causing disastrous floods.
The New Orleans Mayor, Ray Nagin, has warned looters will be sent to jail.
Our correspondent says the mood among the city's remaining residents is of hope and fear.
PHOTO CAPTION
Water is pushed over the flood wall into the upper 9th Ward from the effect of Hurricane Gustav, in New Orleans, Monday, Sept. 1, 2008
AFP
