Hi Debmich,
you'll find that there are about 100,000 choices out there, and probably about double the amount of opinions. :D
I'll let you know what I found, and my thought process, hopefully it will help.
The creme-de-la-creme of dive camera's used to be (and I believe still is) is the Nikonis series by Nikon. (you might need a second mortgage for it though).
Sea and Sea is made specifically for diving
Sea and Sea Home page I know people that use them and swear by them, price ranges from about $350 upwards (dx3100 and dx500 were the ones that I heard the most about, but I think that the 3100 is being discontinued -- might find some good deals with that one)
There are also companies who make aftermarket products for your existing camera's digital and 35mm, rated to good depths for recreational divers. I'll see if I can find my links to those sites.
Sony, Canon, Olympus make housings for their consumer models that again are rated for 100-150 feet, well within the limits for recreational diving.
We ended up getting a sony digital camera that has an optional housing available for it (dscw7).
First I wanted to go digital, figuring it would be less expensive as far as film goes, especially when learning to use it under water, and no doubt getting a few "bad" pictures, and secondly, it wasn't strictly a bulky dive camera. Even with the housing on, its not that big, so it can be used when on the beach (no worries about sand), or in the pool, snorkling, etc, or on its own without the housing. Then it becomes a nice small digital camera. I dove with a fellow from Scotland last time we were in cuba who was using the model down from the one that we got, and saw some of the pictures that he took with it. they were very nice, and no extra equipment needed in terms of a flash or strobe). Also, check out Wossa's pictures in the gallery, I beleive he's also using a Sony with the housing.
the thing to remember is that the flash on most digital camera's drops off after about 3 feet (sometimes less), so to get any good pictures where a flash is required, you still have to get in close, unless your willing to carry a large strobe that will light up the area. If you're that into photography, then the Nikonis or equivalent is the way to go.
Hope that is some help at least.
you can try
http://www.leisurepro.com to see a wide range of camera's available for diving/snorkling (it's a US site, funds are in US dollars, but they seem to have everything I use it as a reference site).