Tight budget, but still want an UW camera!!!

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As a starter, you can't go wrong with almost any point-and-shoot Canon and a housing. Small and easy to deal with on dive boats. I've been using and old A510 and housing for 4 years. Keep the lens wide and get close and you'll get some nice shots. The underwater setting boost the reds and will give decent results down to 45ish feet depending upon conditions. In clear water the internal strobe works ok to about 5-6 feet
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Nurse shark 55-60 ft about 10-12 feet away, no strobe. Cloudy water and day. Very blue.

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Frog fish at 35-40 ft from about 18 inches away, no strobe. Still plenty of red in the shot.

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Lobster and blue sponge at night with internal strobe 2-3 ft away.
 
Awesome!

The quality of pics above is all I am really looking for at the moment. I only dive warm caribean waters and 9 times out of 10 the visibility is usually very good.

Looks like I will go with the S90 and the canon housing.
 
I agree with the couple of others who recommended you to start with the S90, Canon case, and internal flash. You can get some very nice pics with the internal flash in clear tropical waters. You just have to be fairly close to what you are photographing. No, you will not be able to illuminate a big section of the reef, and you may get some backscatter. You can always move up to a strobe later. Here are a couple of examples of pics I have taken with a Canon A630, Canon housing, and internal flash. I am quite happy with them. Note that the A630 is not nearly as good a camera as the S90, and that I don't take many flash photos because I only snorkel and usually take available light photos. The flash photos I do take are in crevices or overhangs. The fact that some of my flash photos have turned out relatively well given that I take so few of them speaks well of the internal flash.
The first photo was taken in Culebra Island, Puerto Rico.
The second photo was taken in Destin FL (in the Florida Panhandle).

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Has anyone used a canon SD600 under water. Is it acceptable for a "starter" UW camera. ($200 for the housing)

I use a canon SD600 with the canon housing and an ikelite DS50 strobe with EV controller. See the pics I have posted as all of them have been taken with that set up. I think it takes good pictures for the price. I have also had luck without the strobe as well just make sure to get close. Hope this helps.
John
 
Have to imagine my SD550 is pretty close to the SD600. All underwater shots were taken using the Canon housing. I have no strobes and do not think they are necessary to get some great pictures. It all depends on the dive conditions, the techniques used, and some luck!

Cozumel in 2009
Cold Water Diving in 2009
 
https://www.shearwater.com/products/swift/

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