jfe
Contributor
I've recently bought myself a Nikon 1 J1 of ebay for $100, it's a mirrorless camera, as close as you'll get to DSLR. It has amazing photo and video quality. Nikon 1 J1 Review - DigitalCameraReview
I bought the underwater casing from B&H for $50, and they still run the same special on it. Nikon WP-N1 Waterproof Housing for Nikon 1 J1 / J2 Digital 3689
I love this setup, and have to say (without slandering any other make) my Sealife DC1400 has retired now. That leaves you with another $150 on your budget for a strobe maybe
I bought the underwater casing from B&H for $50, and they still run the same special on it. Nikon WP-N1 Waterproof Housing for Nikon 1 J1 / J2 Digital 3689
I love this setup, and have to say (without slandering any other make) my Sealife DC1400 has retired now. That leaves you with another $150 on your budget for a strobe maybe