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Japanese camera blog Circle Rectangle has reported on a new USD$20 digital toy camera by a company called Green House. It may or may not be named "Mini Digi", as shown on the official website. It's pretty small, uses a single AAA battery and features a keychain ring, so I'm gonna put it at about the size of a Vistaquest VQ1005.
Still photo resolution is a basic 640x480 VGA, with video recorded at 320x240 QVGA. No word on the frame rate. Memory is fixed internal, and enough for approximately 160 shots. I assume they are transferred to a computer via a mini or micro-USB cable. The website states several versions of Windows as a system requirement – my guess is that it mounts as a mass storage device, which should make it Mac compatible as well, but don't take my word for it. Still, it's extremely cheap and might be worth ordering.