funny you posted this while i am sitting here looking at waterproof cameras on ebay. I did have an olympus stylus 850. We originally bought it for snorkeling in jamaica. It is waterproof to 10 ft. It was perfect for snorkeling. Since using it for that 2 years ago, we have taken it to the pool and beach many times. Always performed flawless and took awesome pics. This past weekend it developed a crack in the case and no longer works properly.
I am trying to find a replacement. I liked the olympus so much it is hard not to just buy another one. I found them on ebay for like 160. There are also newer versions, like the 6000 tough. They run like 140.
But, my wife is a professional photographer and only uses canon, so I have looked at them too. They make the d10. Which is very nice but also the most expensive. It runs like 270.
Fuji also makes a nice budet model waterproof camera. You can find it for like 120.
I think I am leaning towards the Olympus tough 6000. It is a nice unit., 10MP. They do good with video too.