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Mt. Gox now requires at least Level 1 Verified in order to deposit or withdraw Dwolla funds.

Level 1 says Government Photo ID + utility bill

But then I see an update saying an apostille is needed. Is that just for a Level 2 (Trusted) account?

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An apostille is only required for level 2. Their original announcement of the change was confusing, but they have since clarified it on the forum - https://bitcointalk.org/index.php?topic=60074.msg716245#msg716245.

Edit: You also need a bank account linked to your Dwolla account that has been verified over 30 days.

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  • That is now true for transferring funds to Mt. Gox, but that 30-day requirement is not necessary when withdrawing funds from Mt. Gox. May 20, 2012 at 18:02

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