Hey Virginian, back in June they changed it. those increments start at .005.
For quote prices above $1, a quote tick size of 0.01 For quote prices at or below $1 but above $.10, a quote tick size of 0.005 For quote prices at or below $.10 but above $0.005 (previously $0.001) a quote tick size of 0.0005 For quote prices at or below $0.005 (previously $0.001) a quote tick size of 0.0001 This change is effective for trading on Friday, June 16 2006.