The Collaborative International Dictionary of English v.0.48:

nickel-and-dime \nick"el-and-dime"\, v. t. [imp. & p. p.
   nickel-and-dimed or nickeled-and-dimed; p. pr. & vb. n.
   nickel-and-diming or nickeling-and-diming.]
   1. To harass or annoy with petty demands or for trivial
      reasons; specifically, to insist on minor concessions in a
      negotiation.
      [PJC]

   2. To weaken or impair gradually or by small steps; as, to be
      nickel-and-dimed into bankruptcy by the operating
      overhead. [informal]
      [PJC]

The Collaborative International Dictionary of English v.0.48:

nickel-and-dime \nick"el-and-dime"\, a.
   1. Trivial; unimportant; petty; as, nickel-and-dime
      criticisms. [informal]
      [PJC]

   2. Involving only small amounts of money; small-time; as, a
      nickel-and-dime business operation. [informal]
      [PJC]

WordNet (r) 3.0 (2006):

nickel-and-dime
    adj 1: of minor importance; "a nickel-and-dime operation run out
           of a single rented room"; "a small-time actor" [syn:
           nickel-and-dime, small-time]
    2: low-paying; "a nickel-and-dime job"
    v 1: spend money frugally; spend as little as possible [syn:
         penny-pinch, nickel-and-dime]
    2: accumulate gradually; "she nickeled-and-dimed together a
       small house for her family"