GoPro’s Digital Hero Camera mounts right on your wrist and is waterproof up to 30m. This camera can shoot 648 x 480 still photos and 320 x 240 videos. The photos and videos are saved on to its 32mb internal hard drive. Available here for $79.95
You lock it down as flat as possible against your wrist when you’re not using it, and when you want to take a picture, just swivel it up in a perpendicular position and you’re ready to shoot.