Hi VaScubaGirl,
I was in almost exactly the same position as you, in that I had been diving for a couple of years and really wanted to get into underwater photography. Unfortunately I had yet to find this board, but I still think that I made a good choice.
The consensus on here (almost to a religous fanatacism
) is that the Olympus cameras and housings are the best choice. The trouble is, that I was a huge Canon devotee and also really wanted a nice camera for use on dry land. As a result I went for the Canon S400 and housing, with a Sea&Sea YS-25DX strobe. My view was that I really wanted to spend more on the camera than anything else, and I could always upgrade the other bits as time went on.
I would have to be honest and say that I love my Canon and the limited results that I have had from it. I have really only taken one dive holiday with it, but have taken a great deal of other land photographs as well. My next dive trip is just 3 weeks away (2 weeks in Grenada) and I can't wait.
So where does this leave you....The Canon kit is a great choice, particularly if you want to take land pics, have a great camera that is really small and want to take videos....BUT.....the Olympus kit does have a few advantages...mostly in the peripherals that can be added, such as wide angle lenses.
Hope this helps in some way.
Simon