Well, all of my videos and all of the images in the gallery here are taken with the older version of the camera you have there. I use the Olympus 790 SW. It is *only* 7.1 megapixel. The more modern one you have there is 10.1, not that megapixels are everything.
I have seen my current camera being sold for $350 at a bing lee store, you can probably get it cheaper new on Ebay or something like that.
I guess I should actually say, that I do recommend the Olympus. I have troden on mine, scratched it across every surface in a canyon, dropped it in the WOllangambe (sunk to 5m down for half an hour before I found it again, and everything else - and it continues to work fine. My only complaint is that it has very limited control (you have to pick picture modes, and you can't set the shutter speed manually, or the F-Stop manually. The best photos I take are done by setting it to Night Mode (making take a longer exposure) and then putting it on a tripod.
But anyway, browse the galleries here (images have been reduced in size for uploading) to see the quality of pictures it takes, and look through my videos to see the quality of video it takes (after You-tube-ification)http://www.youtube.com/user/aegist