Joe, you might try using a thin (half-inch) soft strap. You can wrap it around your wrist a few times and use it as a wrist strap. This is sort of second nature to me now. Once you get the length right, it makes a pretty decent wrist strap, with your thumb and fingers of the right hand(which remain in shooting position)serving only to keep the camera/strap from unraveling, the actual weight of the camera is held by the strap.
As for carrying, 90% of the time I carry my camera over my left shoulder, on my left side, under a jacket/vest/open-shirt, depending on the weather. I really like the fact that the camera is completely hidden and protected when not in use. I take a camera everywhere, every day - with various lenses, extra film, and a lightmeter distributed around in available pockets (I couldn't get away with this with a SLR system). Wouldn't work too well if I was a multi-camera person, but I'll make nearly any sacrifice not to have to cary a bag.
Since thin straps like to slide down your shoulder when used in this fashion, My first modification is some kind of anti-slip treatment. In this case, a thin strip of sued leather contact-cemented rough-side-out - just at the section where the strap meets my shoulder - worked well.
The other essential mod is a some kind of quick-release, since it would be otherwise impossible to take the camera off without first removing my jacket/vest/open-shirt first. Lutz Konneremann sells some really
nice ones (Some day I'll buy one of those, though I'd just use it as an in-line buckle, not as "The Hook"). They have to be small or they get uncomfortable when used in wrist-strap mode.
Partial public disrobing is still required to return the camera to my shoulder, but I don't switch between shoulder and wrist strap that often, so I can live with it.
As to strap length, I like the strap to be fairly snug on the shoulder when the camera is at my eye, that way it's a little steadier.