It sounds like just what you're looking for, Mark. Here's a detailed review of it:

http://www.digitalcamerareview.com/default.asp?newsID=3798&review=canon+powershot+a1000

And here 'tis on Amazon: http://www.amazon.com/Canon-Powershot-A1000IS-Stabilized-Grey/dp/B001EQ4C4E

For $167 I may buy one... I love my Canon 50D, but it doesn't fit in my pocket!