Ready for a new camera

I'm brand new to these forums :)

For a number of years now I've been working with a Nikon Coolpix 4300. It's done a good job but I believe I'm ready for an upgrade.

Things I am looking for:

- A thin camera, one that I could fit in my pocket.
- At least 640x480 @ 30fps movies
- At least 7 MP ? Not sure how the current market is, open to suggestions.
- Image stabilization? I saw it listed in specs on a few cameras.

I'm pretty lost in the list of specs on many cameras listed on the net. I really don't need anything super fancy like an SLR since it will be for relatively average use. I want it to be able to take solid pictures w/o the need for a tripod of course, I'm hoping the image stabilization will help this?

I would like it to take movies w/ sound as well. I know this isn't a digital camcorder so I shouldn't expect a whole lot, but it is still a feature lacking in my current camera. I know I saw one that took 1024x768 @ 15fps, but I'm thinking 15fps is pretty much useless.

The reason for the size thing is pretty simple for me. I don't like lugging around tons of things when I go on vacations and stuff. I feel I have lost opportunities on good memories because my current camera is big and bulky and I don't bring it because of that. If I could fit it in an average pocket then I'd take alot more pictures.

Any specific models I should look at? Would like to keep it under $500 if possible, but am willing to vary on that price.

Am I asking for too much in a supercompact?

edit: Another thing I don't like with my current camera is the time it takes from when I push the button and the picture is actually taken. It's virtually impossible to get any action shots like this.

I clicked in your parameters,(well I cheated and said 8 million instead of 7) at dpreview and also said compact and not ultra compact. Got quite the list with some being obviously too big but take a look and see if any are what you want.
Others here may have what you want and can give you hands on experience.
http://www.dpreview.com/reviews/compare_post.asp

Have you looked into the new Canon Powershot G9?
Seems to have all that you are wanting in a camera
and the price it right near your budget.
The ISO can go up to 1600 but from what I have read
most sub-compacts are not very good over ISO 400.
This is Canon's new Powershot and I have not heard
any reviews on the high ISO.
Hope this helps.

I don't think Canon Powershot G9 is thin enough for Maverick0984 to fit in pocket. Sony DSCW100 may be a good choice, It features 8.1 Megapixel Effective Super HAD(TM) CCD Super HAD(TM) (Hole Accumulation Diode) CCDs allow more light to pass to each pixel, increasing sensitivity and reducing noise / Up to 3,264 x 2,448 resolution still pictures and up to VGA 640x480 30 fps for movie imaging. And this model is thin, you can fit it in an average pocket. A recent price is $499 online, you can look up
http://www.**********.com/searchdeals.php?deal_id=61112
And it also has a great review, have a look
http://www.cameras.co.uk/camera-revi...y-dsc-w100.cfm