Thanks...thats about the same conclusion i have came up with based on my research and the other opinions in these forums. I also assume that at those depths i would be using a strobe the majority of the time...If i wanted decent shots! I have yet to see anyones pictures from the local area that are really nice except a few of a whale shark encounter...then again i don't know any good underwater photographers or anyone with quality equipment. Everyone that i know has a point and shoot but no strobes. This is why i need all the information i can get and every bit is appreciated!! I am leaning towards the DX-1G also, hopefully i will get good results at those depths....Any additional opinions are welcomed!
Gracie, you can definitely get nice shots with a simple p&s and a decent strobe, especially if you add an external wet lens. I just upgraded my camera last week to a more sophosticated p&s, but before that, I was shooting a simple p&s, most of the time with one strobe and the addition of wet lenses.
The camera I used to use was a Sony DSC-N1 in a Sony basic housing with an Inon Z-240 Strobe and Inon wet lenses. I'm not saying my shots were spectacular, but I think they were nice, considering they were taken essentially with an accessorized basic p&s. Here's a few shots I took with that system before I upgraded to two strobes:




Therefore, I'm not sure if you want your system to grow and give you more shooting options and capabilities, but if you do, you can certainly accomplish that with a p&s system. The key is finding a camera and housing option that is within your price budget and that will accept the addition of a mount base for wet lenses and stobe connections.
Adrian