Folder with under 2'' blade.

I have the cricket, Lava and sub coms along with numerous other knives and the Lava is my favorite knife. It fits my hand perfectly and even with the short blade I have never felt that it is inadequate. It cuts like a much longer knife. You might be worried about the SS handles but don't, the Lava's shape makes it virtually impossibel to drop the knife. Plus it has VG-10.
 
I like the Cricket a lot.

But my favorite small knife is the Buck 503 (it's in my top five favorites overall actually). If it's not under two inches, it's pretty close to it. It's a beautiful, classy looking knife that wouldn't scare anyone and cuts like a bigger knife.

If a drop point isn't for you, there's always the Buck 55, a half size version of the 110 with a nice clip point blade... both the 55 and 503 are great knives, American made and both under $45.
 
When I read the title of the thread, I couldn't think of anything but Spyderco.

They are the truth when it comes to small blades that still handle business.
 
Not much new to add, but look seriously at:

Blade-Tech Mouse II (either G10/S30V or FRN/440c)
Spyderco (quite a few that meet your needs: Lava, Cricket, Ladybug, Spin, and maybe the Dragonfly although I think the blade is maybe 2.25 or so).

and one I didn't see mentioned as I scanned the responses

Al Mar SLB.

Good luck on finding the one that's right for you.

:)
 
Thanks for all the help guys! I ended up ordering the spyderco lava. The handle looked the most comfortable of them all, and I really like VG-10 blade.
 
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