After much research and recommendations, I just bought a canon s70. It is very simple to use because it allows for automatic adjustments of both shutter and aperture but you can also set it for manual down the line when you need the flexibility. One of the things that makes this camera stand out is that it's zomm goes from 28-100mm which is considered wide angle. This is great for macro shots. I forgot to mention it is a 7.1 megapixel camera. Finally, I just bought mine new for $230 off of ebay, albeit, it took a little time to snag the best possible deal. It can probably be had extremely easily for $300. The housing runs around $170-200 depending on where you buy it.
All in all, it's a very nice camera for both on top and underwater. You might also notice that the s80 just came out. And the reason I decided on the s70 was not only the big price difference, but also the fact that the s70 has RAW capabilities that the s80 doesn't.
Hope this helps.
