I am not going to recommend one of the waterproof cameras currently on the market. The entry level cameras are NOT good dive cameras and you make some sacrifices in features that you might want to use on land. For nearly the same price you can get an excellent point & shoot camera and a serious underwater housing. If Jacquelyn was going to be diving more often then a dedicated waterproof camera would be worth the cost but in her case I don't think it is. Instead I am recommending the excellent
Canon PowerShot SD1100IS 8MP Digital Camera with 3x Optical Image Stabilized Zoom
along with the
Canon WP-DC22 Waterproof Case for Canon PowerShot SD1100IS Digital Elph
The camera and the housing have near perfect ratings and give you the flexibility of having a solid little digital camera that can fit in a pocket or a serious underwater photo setup designed for dives up to 130'. The camera even has a mode for underwater shooting! And well cared for housings have good resale value, when you decide to upgrade digital camera you can sell the housing and recoup some of the cost.

Possible Alternatives:

Canon PowerShot D10 12.1 MP Waterproof Digital Camera with 3x Optical Image Stabilized Zoom and 2.5-inch LCD
More megapixels(12MP), waterproof down to 33' -funky looks that might appeal to some.

Olympus Stylus 1050SW 10.1MP Digital Camera with 3x Optical Zoom 10MP, waterproof to 10 ft,

If you are not Jacquelyn and you want your own personalized recommendation

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