Looks like she will hit west of NO, fortunately considering the city's greater vulnerability due to its low elevation. East would be better, but she doesn't seem to be turning quickly enough to do so. Although abrupt turns aren't unknown.
http://flhurricane.com/googlemap.php?1998s7-2005s12

A bigger question would be how strong she will be. Her winds are already high enough( 175 mph) to potentially qualify as a category 6 if there were a Category 6 on the scale. The Weather Channel is reporting minimum low pressure as 902mb as of 2:25 EDT. She has strengthened rapidly over the last day so she could become stronger, particularly considering that the warming of the surface waters began along the Gulf Shore and expanded into the Gulf over the last week or so.