The Canon S95/S100 line would work. Very small but takes very nice images. Video, too. They're a bit pricey at the moment, though. I paid $225 for my S95, but then the price went through the roof. Now an S95 is only marginally less than an S100. Still, for size and quality, they're tough to beat.
"The $0.99 menu was put on this Earth for a good damn reason." -Weebl