I've just bought an Olympus 'Mu' 770-SW. The 'Mu' is phonetic for one of those backwards 'y' things, but I don't know how to do those! Anyway, back to the camera. It's a 7.1 Megapixel 'point & shoot' but the cool thing is, it's good down to 10 metres in water and very
shockproof! The picture quality is good both in & out of the water, the only drawback I can see, is that the menu & sub-menu structure is not so straitforward, but I guess that's something you'll get used to.
I found this camera on http://www.camerasunderwater.co.uk
. I didn't use their mail order service, instead, as I was passing their door, called in. The people there were very knowledgeable & helpful.
Hope this helps.