I will amend my last post below to include this important information. My camera has since returned and was done fast and efficiently. The whole process took about three weeks and all the repairs were covered by the standard manufacture warranty and I only paid the cost of shipping to the Olympus repair facility. Nothing was argued and nothing was blamed on me. I do wonder though now if was not the fault of the Olympus Silicone case i was using that increased my chances of having water damage done to the camera... Overall I was very upset that this camera broke. But the camera was covered and it was fixed. The main board and back rubber middle was replaced. Because water came in from the back of the camera and not one of the doors I figure that the new TG-2 has been beefed up to prevent this as the two cameras look the same but are very different. This is my only Olympus product but I would buy more of there products in the future. THANK YOU OLYMPUS! I really like the picture quality.
I'm really disappointed in my TG-1. I just mailed it out to El Paso, TX this afternoon for warranty repair. I'm completely bummed... Summer is short in Minnesota and will not have my camera for use for my summer fun activities I purchased it for. I have only used it a few times and was on vacation with my family in San Diego when the back buttons stopped working. I have sent a letter via certified mail to explain my frustrations with Olympus and this model... I'm not the first customer to take their camera to the beach and then realize that the back buttons no longer work. No menus... no videos... nothing. I think this is a great camera, just don't get it wet, and make sure you have a backup camera for when this one falls apart or stops working.