Give me some camera advice.

I like my Sony DSC-V1, but I want to pass it along to a chosen recipient and replace it. I have a nice Nikon D50, my good SLR camera for serious photo outings, but I also want a small camera to carry around all the time. The Sony DSC-V1 has been great, but it's a little thick, and I'm thinking there are some improved and highly portable cameras out there. I want to be able to take nice stills and also to do little movie clips, like the one in the previous post. What should I buy?

ADDED: And is it too much to ask for a camera like this to interact properly with iMovie? Using my Sony camera with iMovie, the sound portion was eliminated, something having to do with the format, I believe.