I just got word from my Mom. They are in Panama City Beach (or maybe Panama Beach City). Check out the hotel they are staying at. She said they have a great view of the Gulf. I, personally, don't think they are far enough from the path of the hurricane, so I think she'll have a great view of a lot of rain and big waves. However, they are much safer than in New Orleans, that's for sure.
Link to hotel:
http://www.bestwesterncasaloma.com