Low Profile Tires?

My "new" commuter bike is a Nishiki Landau 7-speed; it's a great bike that is in great shape but I have a small issue.  The old tires that were on it were 700x25; they needed to be replaced so I used an old-set of 25's I had around.  The problem is that back tire is almost rubbing the frame above the caliper - close enough that I want to address the issue before something lodges in there.  When I looked at the old tires, they had a very short sidewall compared to the newer tires.

So, the question is; are there tires with a shorter sidewall that I could use or am I stuck with going to a narrower tire?

Shane