I purchased the Sanyo Xacti E2 which is a waterproof camcorder with the usual still picture capability. I have been very happy with it. I just made a video where I was sailing with the view at the waterline. Then I put the camera underwater while sailing which gave a neat view under the kayak. Sanyo makes a tether that I use to attach to the chest of my PFD which fits in a mesh pocket like Kayaking Bob. I can sail with one hand while filming with the other.
Maybe some day I will capture some underwater footage of a Great White stalking my AI. There have been some reports of a very large one prowling the local area. A stand up paddle boarder had one cruise alongside him a few days ago.
Anyways, Amazon.com has this great camcorder for only $199 which is a fantastic price. Don't forget to buy extra batteries. The Lenmar ones are working out fine for me.
One last thing, when putting your camera under water while sailing, be ready for your seat to fill with water as the water rushes up your arm and into the kayak.
http://www.amazon.com/Sanyo-VPC-E2-Digi ... 722&sr=8-1