The Collaborative International Dictionary of English v.0.48:

dinky \dinky\ adj.
   1. small and insignificant; shabby or unimpressive; as, he
      drove to work in a dinky old Volkswagen; we stayed in a
      dinky little hotel. [informal]
      [WordNet 1.5]

   2. pretty and neat; fashionable or well-dressed; as, what a
      dinky little hat. [British informal]
      [WordNet 1.5]

WordNet (r) 3.0 (2006):

dinky
    adj 1: small and insignificant; "we stayed in a dinky old hotel"
    2: (British informal) pretty and neat; "what a dinky little hat"
    n 1: a small locomotive [syn: dinky, dinkey]