Looking at the pentax and olympus ranges, it seems that Olympus is the way to go for waterproofing.
However price wises Im a bit out and will have to fork out more likely £120-£150 for one of the cameras.
Their lowest end waterproof camera, the 770SW (
http://www.olympus.co.uk/consumer/29_mju_770_SW_Specifications.htm) might be doable around the £80 used/nearly new on ebay though. I will have to wait till I get paid!
Tis annoying they all seem to be using XD cards!
The only other annoying thing is the apparent lack of manual focus. Am I asking too much of the current generation of compact digital cameras? The reason its preferable is that its useful for taking shots of critters under a microscope:
Im not sure whether the autofocus would cope, but I guess one way to find out when I have money, is to go round some camera shops and see if the shop clerks will let me try to focus the camera through the end of a binocular lens!