This may be a little out there...Does anyone (familiar with digital cameras) know if they make a underwater digital camera? I am not talking about a camera with some sort of water case(I have heard of someone using some waterproof military case).Is this something that is available now? If so how much?

You might check Nikon's sites. On a lower level I've been told that the "disposable" ones can give decent results.
p.

Go to a dive shop. They have a few available these days. Can't remember the brand but in the $200-300 range but onely 1-1.5 megapixels though.

There are cases available. Go to www.steves-digicams.com. Then go to forums. At the bottom, under misc. forums, there's one dealing with underwater photography.

Our son took some awesome underwater pics both with digital and video cameras using a waterproof underwater camera bag. Much cheaper than buying a camera specifically for this purpose.

This is one website for an example (scroll down):
http://www.magicsurfbus.com/surfshopcam.htm

I have an underwater housing for my video cam and I love it! It is a thick plastic case that seals airtight. It got it from ewa marine. Go to www.ewamarine.com or www.ewa-marine.com cannot remember the exact address, sorry! THey make these lightweight housings for video cams, 35mm, digital, cell phones ,etc. I really love and trust this brand.