My wife and I do some snorkelling and diving and currently use one of those throw-away cameras. Yeh, I know what your thinking but you have to start somewhere. Anyway we wish to move up the ladder a bit and purchase an UW digital camera in the $300-$400 price range (it that's possible). Just something that is a no-brainer that takes decent pics. The most we would be enlarging is 8X10 so as to keep the cost/megapixel down. I'm from Missouri so dive shops are few and far between with very limited selection. I would appreciate any information on what brand and model of cameras that might fit my needs and budget. If you have any suggestions on where to purchase that would be a bonus. Thanks in advance.
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What to buy for newbie?????
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Welcome to Wetpixel.
You will have a hard time finding a new camera and housing for $400. I would recomend looking on ebay for a used camera/housing. Last years model can be had for a very significant discount.
I am partial to sony. I would look for a DSC-T1
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Definitely look for a used set up. One with manual mode or at least Aperture priority is a big advantage. A wider lens is always an advantage.
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I would look for a Fuji 810 and the Fuji housing.
This will give you full manual control as well as the auto settings, a very affordable startup, and the ability to upgrade to an Ike housing, strobes, etc., if and when you get "hooked".
Look for images taken by Dr. Bob Whorton. For example:

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At $300 for the housing and $300+ for the camera, the Fuji setup is a little out of the original poster's price range. Another option would be a used Olympus 5050 setup. You could buy a used Olympus camera and a NEW housing for <$400. I wouldn't recommend buying a used Olympus housing, but if you can find a used Ikelite 5050 setup for a good price, then go for that.
Either way, $400 is just the bare minimum you can spend to get into this, so be prepared for some shopping frustration.
James
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I'm also a newbie to the world of underwater photography and still learning the ropes, but I can share my experience with what I've used while snorkeling.
On our Turks and Caicos trip this year I used an Olympus Stylus 500 in an Olympus PT-026 housing. I was quite happy with this setup and the photos turned out decent. I loved the 2.5in screen. I actually got the digicam as a refurbished from Olympic Auctions on eBay for $179. Luckily the camera has been perfect, couldn't even tell that it was not "brand new". I think you can find an Stylus 500 online for about $250 - $270. I got the housing online at Digital Foto for $160.
Last year I used an Olympus Stylus 300 in an Olympus PT-016. I found it very difficult to take photos with this setup while snorkeling as all I could see most of the time is my reflection. So most of the time I was shooting blindly. <_< I think the Stylus 500 has a better LCD.
You can take a look at my photos from T&C trip.
Like I said, I'm still learning and will be working on better pictures next time.
Hope this is helpful.