We study both the activation energy for diffusion and dynamics of nanoscale clusters of a Frenkel-Kontrova chain subject to the microscopic friction, in connection with atomic friction phenomena. We clarify the atomistic mechanism for the presence of a magic size for diffusion and show how the magic size effects appear in the friction. When a cluster is pulled by a constant driving force, the critical force strength of depinning depends crucially on the cluster size, and it is smallest at the magic size. When a cluster is pulled by a spring at a constant velocity below the critical value, clusters show a stick-and-slip motion, and the maximum force of a spring also becomes smallest at the magic size. (C) 2004 American Vacuum Society.