I wonder what kind of project you got up your sleeve besides snorkeling. Have you considered the GoPro HD Hero cam?
The g12 is a great camera, my friend uses it for diving and it takes great shotsPersonally, I like the Canon Powershot G series with their waterproof cases. Cases run ~250, camera ~ 450. Definitely good value for the type of camera and capabilities, especially since I already had the camera. They are also good for video. A friend has a gopro and love it, plus they are cheaper.