I have a Pentax Optio W60, 10.0 Megapixel, 5 x optical zoom, and it's waterproof, which is important to me since I live at the beach and spend so much time on the water.
It's given me some fantastic images (including underwater stuff), has a huge array of point-and-shoot filter options, and takes really nice little movies (that are only limited in length by the memory available in the memory card).
Complaints: Proprietary battery (I bought two spares), zooming in while shooting movie produces less than desirable results (I always start the movie zoomed all the way in/close and then zoom out, which seems to make it work just fine), and it's only waterproof to 13 feet (I keep a floating key fob attached to the wrist-strap).
Here's a google review page of it.
Here are a couple shots from my little Pentax...
At the beach
Out on the water (in kayak)
Good luck on your search.