Sigh ... This thread is not just really old, but the OP scubasteve66 created two identically titled threads with identical initial posts back on 11/11/07, this one we're posting in, in the forum
General Scuba Equipment Discussions, and also
http://www.scubaboard.com/forums/basic-scuba-discussions/209712-underwater-navigation-device.html in the forum
Basic Scuba Discussions !!
Worse, both stayed alive for many years, this one last posted to in November 2012, the other in November 2009. That last 2009 post coincided with the announcement of the Navimate, and pointed to it, and then died. This thread lived on with ongoing discussion of the Navimate, which remains vaporware. If nothing shows up at DEMA '13, maybe I'll follow up with what I said above in post 9/24/12 and ping them for status.
BTW, the OP scubasteve66 hasn't been on the board since November 2009, three days after he created these two threads.
With the forum archeology issues outlined, to respond to the substance of the recent posts:
In the other thread starting at post #35 on 10/18/08, user kacem78 suggested an inertial guidance device he was working on. The discussion is technically interesting and goes on for awhile, I expect you'll find it worth reading. Alas, kacem78 last posted there in June 2009 (might be his last post, and shortly before the Navimate announcement) and hasn't been on SB since August 2010.
From the discussion, I believe kacem78 had something working as a prototype. Five years on, I expect that the state of commercially available MEMS devices makes this even more feasible. So you're quite right to suggest it, but I thought I'd connect everyone reading it with the earlier discussion of solving this with inertial guidance.