I have been having good luck with the Flip Ultra HD with the waterproof housing. You can be up and running with 720p for around $200. Check out my latest little video creation shot with the Flip:
I have a regular flip, works real well and is super simple to use. Nice for a general use camera. If you plan on mounting a camera on a board, helmet, or on the boat for surfing, I would go with the Vholdr. The go pro is cheaper but the Vholdr is better. both hav HD options