Check out this crazy wearable clip camera that can shoot 720P videos and take 5MP photos! This thing is ridiculously small. The trend seems to be, create a small camera, and clip it to shit, thanks GoPro.
This camera has amazing specs and looks impressive. Not only can it shoot at HD and take photos larger than most cameras, it has lights to help record video at night. It records to micro SD and makes downloading easy. The entry-level 4GB model will run you $50, but you can upgrade to 8GB or 16GB for $10 or $20 more, respectively. Head over to the MeCam website