I have an earlier model of the Olympus (the 790SW) which has similar features. I've taken it out in the rain, stuck it underwater, run it under the tap, and it's held up so far. Mind you, I haven't put it in salt or chlorine water which may be something which would wear out the seals more. I've found the image quality pretty good on the 790, some distortion around the corners, but it's a P&S and I don't expect perfection. But I did want it for the waterproofing and dropability
