I just purchased the Bonica Snapper HDDV. It was the cheapest and most compact one I could find in the Hi-Def arena. It is a video camera but will also take 5 megapixel still photographs. I’m happy with the results, and just starting out with underwater video I didn’t want to spend an arm and a leg, so I’m happy with the proce too. One thing is the audio is not good - it picks up the sound of the auto-focus motor - but for underwater I don’t really care much about the audio. You can see my test runs on YouTube - search for dreymers: these are relatively shallow dives (30 feet approx) so the natural lighting was pretty good.
I decided not to get a light for it yet, because of my budget. So I can’t really offer you any advise on lights. When the time comes, I will get a video light instead of a strobe, since I primarily am using it for video and not stills.