There are a number of cameras with manual settings, but they are usually not skinny. Also, the larger the sensor=shallower DOF= blurry backgrounds. Since point and shoots have a small sensor, it's hard for you to blur the background and it won't be nearly as effective as a DSLR.
If you don't mind going to a compact, instead of ultra-compact, then look at the Canon A-series cameras.
Well I am in the market for a new digital camera. I like slim and sleek cameras with big lcd screens. I recently bought a digital camera and its great, but I am wanting something that will let me adjust the aperture/depth of view, so I can blur backgrounds and focus on what I want.
The only thing is I am not willing to spend more then 250$ and I don't want a big bulky Dslr, any suggestions?