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Underwater digital camera?

There isnt a cheap option (I have worked in the camera industry) either a housing as mentiond or second hand sea&sea or nikonas(nikon for underwater) but both expensive (not hobby tools).
If just snorkaling try a disposable 35mm (not APs their crap) goes to abour 5m.
Try ebay for a Minolta 35mm underwater camera.

Just my 2 pennith
Had an olympus mju digital with an underwater casing for under £260 at cameraworld near oxford circus. Still works fine, but with the constant upgrades and changes about, if you keep eye to ground, might be able to find something a little bit up to date.
Therse always e-bay for those last minute bargains. Failing that Small Brown Bits has answered your question. Olympus do some cracking digital cameras with housings for around the £200 ish mark.

If all else fails, book a trip to Cyprus and dive on the Zenobia wreck. At times the place resembles a tip for diving equipment!!

Securing those expensive dive bits and bobs to your person is for winners.

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