There are rugged cameras and there are RUGGED cameras. The SeaLife Mini II Dive & Sport is definitely the latter type. This little point and shoot camera is guaranteed waterproof to 130 feet! That water resistance is without any sort of enclosure too, which is all the more impressive.
The rubber housing has also survived drops form six feet up in testing and the case is crush resistant as well. The camera has a special underwater mode that removes the blue hue common in these sorts of photos. It has a 2.4-inch rear LCD and gets power from a pair of AAA batteries. It can also record VGA quality video.
The image sensor is a 9MP unit and it saves in JPEG format. The Mini II lacks optical zoom, but it has 3x digital zoom. Internal storage for the camera is 28MB and it can use SDHC cards up to 8GB. The camera will ship in March for $259.95.