The standard coin selection algorithm in bitcoin would generate a one input / one output transaction.
Not true. Bitcoin does this sort of thing all the time. Here's a Bitcoin Faucet transaction that does it:
http://blockexplorer.com/tx/863d906463c3b5c24e76ebc04539f7ae33e3e55efab9affb15eb4379487d9e3cI've noticed that Faucet transactions are especially prone to this, so it might be more likely with small amounts.
(Edit: Hal's explanation fits. People must be sending Faucet coins to the Faucet.)