Well after further digging, perhaps the manual is wrong...Here's what the sealife website states. Hopefully someone at Sealife will clarify....
7. Tips for avoid out-of-focus pictures.
The camera's auto focus system has an effective range is 2"' (5cm) to infinity. Understanding how your camera's auto focus system works will help you avoid taking out-of-focus pictures.
For the camera to focus correctly there must be sufficient ambient light to illuminate the subject. The camera may not "see" the subject in low light. The subject must also have some contrast. It is difficult for the camera to focus on a white wall with no contrast. The focus square in the center of the LCD display will turn green when the camera accurately determines the focus. If the focus square is red, the camera did not accurately determine the correct focus.
Here are some tips to ensure a sharp focus:
1. Learn how to use the focus button (the button with the flower icon on it):
The "normal focus" [no icon] shooting range is 1ft (30cm) to infinity. When using the zoom feature, normal focus is 1.5ft (45cm) to infinity.
Push the focus [flower] button and select "Infinity focus" (mountain icon). This will lock the camera to infinity, so anything beyond 2ft (60cm) shooting distance is in focus. This setting is very helpful in low light conditions or when the subject is low in contrast. When the camera is set to Infinity focus, the camera will also have a very fast shutter response time. You can also set the camera to Landscape focus and benefit from a very fast shutter response time. Landscape focus will lock the camera to infinity, so anything beyond 2ft (60cm) shooting distance is in focus.
The camera will set the focus on the subject located in the center of the picture. Align the square located in the center of the LCD over the subject. Subjects outside this square may not be in focus. The depth of field for close-up pictures is only a few inches.
For more information about focusing, please refer to page 20 of the DC1000 instruction manual.