Camera recommendation

Any recommendations on what I should go for in the way of underwater camera.
Got to be digital. Want to use it out of the water as well as in.
Should I go for a dedicated u/w camera or a surface camera that just so
happens to have a u/w housing?
Got any idea of a budget of £300, but would spend more for the right one.

I'm a bit wary of dedicated u/w camera as a mate has just spent £800 on
a package and his first attempts wern't as good as the ones I took on my
£30 cheap and cheerful plastic box.