What's remarkable about the E1 is that the waterproof housing hasn't made the the camera a hulk. It's still just over 8 oz. and truly palm-sized. There's a 2.5" LCD, which is also waterproof, as there isn't an optical viewfinder. You can play back photos and videos while you're still at the beach.

I remember a few years ago my sister had a gigantic yellow waterproof still camera and it was great- for the beach vacation which happens once a year. The Xacti E1, on the other hand, is small enough and versatile enough to be your everyday camera. A few more specs: 5X optical zoom, a low light mode that lets you film in environments as dark as 2 lux, anti-shake digital stabilizer, and the ability to take stills while you're filming video. It's tapeless, of course, using SD cards. There's also a whole range of optional accessories, like a "surf-style" camera leash for the wrist, and special waterproof camera case.

Very reasonable price too, just $499. The Xacti E1 will be available in mid-June, right in the swing of pool season, and you can check for vendors at Sanyo.