I just got some interesting feedback from the field in Iraq.  Apparently the KA-BAR Desert Mule is winning over hearts and minds as a good utility/combat folder.  It is a bit larger than your spec, but sounds like it is good and reliable.  Not a bad set up for a $40 knife.
If the boys in the field are raving it, then it is worth further investigation I reckon.  I do plan on getting one now.  I am going to post this info in a new thread as well.
I am also going to check with the professional critics on Bladeforums and see what they say.
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The ultimate result of shielding men from the effects of folly is to fill the world with fools.
-- Herbert Spencer, English Philosopher (1820-1903)