I have the 8080 ($640) with an Ikelite housing ($540) I looked at all the options in the $500 to $1000 range. Although a DSLR camera is not that much more the housings seemed to be over double the price. (ie Ikelite housing for a D-70 or Digital Rebel is $1200) I got the housing and strobe for less than the housing alone for a DSLR. Something to consider.
Check out this review
http://www.dpreview.com/reviews/olympusc8080wz/
Here's the final conclusion from the above review:
Overall conclusion
My first impression of the C-8080 Wide Zoom was, "at last a prosumer camera that feels as though it is worth its price tag". The C-8080 is built to a higher standard than any of the other eight megapixel digital cameras (save maybe the Sony DSC-F828), with a thick, high grade metal body simple rubber coating and innovative yet unfussy control layout. This is a camera which feels as well put together as a much more expensive digital SLR, you just know it's going to last. Olympus also broke the mold with the C-8080's design and although initially the camera controls may seem complex it all falls into place and changing settings (almost any setting, they're all there) become fast and logical.
The C-8080's has two major assets which set it up as an excellent 'photographic tool'. The first is the thing which dominates the camera's shape, the large lens. Olympus didn't rush to go down the 7x or 8x zoom route, instead they chose a 5x design but kept the lens diameter big and used high quality glass. This has paid off, image quality is excellent, resolution very high with almost no artifacts and no problems created by the lens itself. Of the five eight megapixel digital cameras currently on the market Sony, Canon and Olympus chose to design new lenses for the sensor, in my opinion the Olympus is the best of all. (The only improvement I could suggest would have been a mechanically linked zoom ring).
The second asset is the camera's performance, being in the right place at the right time to get that once in a lifetime shot is one thing, having the camera switched on and ready is another. Thanks to an amazingly short startup time and short auto focus and shutter release lag you're far more likely to capture the moment with the C-8080 than some of the competition, and we really shouldn't underestimate that.
Take other elements into account, good noise reduction keeping higher ISO's cleaner, a good range of image parameter adjustment, good flash performance, the unique 'direct histogram' feature, superb battery life and an excellent LCD monitor which works well even outdoors and there's little doubt the C-8080 deserves our highest rating.
