In this paper we present significant progress on the fabrication of small-core lead-silicate holey fibers. The glass used in this work is SF57, a commercially available, highly nonlinear Schott glass. We report the fabrication of small core SF57 fibers with a loss as low as 2.6 dB/m at 1550 nm, and the fabrication of fibers with a nonlinear coefficient as high as 640 W-1km-1. We demonstrate the generation of Raman solitons at ~1550 nm in a short length of such a fiber which highlights the fact that the group velocity dispersion can be anomalous at these wavelengths despite the large normal material dispersion of the glass around 1550nm.