
Tropical storms are primarily driven by latent heat release from an inner core of thunderstorms with a broad area of outflow above the low. This deep warm core of rising motion is related to the relatively small area of intense low pressure at the surface. In contrast to most extratropical (i.e. not tropical) cyclones, thermal wind arguments imply that the strongest winds in a tropical cyclone will be near the surface rather than near the tropopause. With the current system, the center does not appear to be very convectively unstable and it looks like it will take on a more extratropical character over the next couple days. In any case, it will bring some messy conditions along much of the Eastern Seaboard, but probably no reason for hysteria. There is also a good discussion on Jeff Masters' Wunder Blog.
Another area of interest, to the east of the Bahamas, is definitely tropical and may have some potential for development. But it's relatively unlikely to impact the United States.