I've never used a waterproof camera, so was interested in your problem of water leaking into the camera. Started reading about it and found the following:
http://www.pcmag.com/article2/0,2817,2366363,00.asp
Cons
Pricey. No lens cover. Occasional lens fog during underwater use.
Like the Olympus Stylus Tough-8000, the lens occasionally fogged up after removing the camera from water, but dipping it back in the water seemed to do the trick.
http://scubadiverinfo.com/3_cameras_panasonic_lumix_ts2.html
Waterproof functions
How did Panasonic waterproof the camera and what do you need to observe when using it in the water? At first sight you'd swear this was just an ordinary compact camera. It's always fun to see people's reactions when you take the LUMIX into the water. Everyone thinks you forgot about the camera and it's now destroyed. It isn't, of course, and the LUMIX certainly makes a nice conversation starter in addition to its many other qualities.
There are some telltale differences. Unlike most landlubber cameras with big zoom barrels that motor in and out, the Pana's 4.6X optical zoom is fully internal. That is quite an accomplishment in such a thin camera. Not all underwater cameras do it this way. Canon's competing D10, for example, has a big bulge in front of the camera to accommodate its 3X zoom. It is so big that it blocks part of the flash when shooting macro. The Panasonic doesn't have this problem. The front of the lens is protected by glass (make sure you eliminate droplets when you come out of the water, else pictures can be useless). The battery/storage card compartment and the I/O connector compartment cover doors have O-ring style rubber gaskets and springloaded latches, and there is an extra lever to push and lock things in place. The manual very extensively warns against getting sand or water onto the packing as even a few grains may cause leaks. Also, it is recommended to routinely inspect the seal and have it replaced if it looks compromised, and also once a year. After use underwater, and especially in the sea, the camera should be rinsed off with tap water, or left in a bowl with clean fresh water for ten minutes or so. Do follow those recommendations!
Underwater case: A waterproof camera with underwater modes practically begs for an optional underwater case, and Panasonic offers one. The DMW-MCFT2 marine case for the Lumix TS2 can handle depths up to 130 feet, which is the depth limit for recreational diving.
http://www.imaging-resource.com/PRODS/TS2/TS2A.HTM
It was a lot of fun paddling around, camera in hand, shooting underwater and the results were more than acceptable. The camera was none the worse for wear although some lines appeared in the LCD screen. They were temporary effects and disappeared after a short time.
http://www.dslrphoto.com/dslr/camera-15520-panasonic-dmc-ts2-user-reviews.html
Scroll down to user reviews:
Camera lasted less than 2 years before it leaked water after being submerged to about 3 feet in fresh water. Both door seals were carefully checked each time it was taken into the water, including the time it leaked. Not sure it leaked through one of the two doors however as the batter and SD card were dry. Water first appeared near the top of the screen, later fogged over the lens.
Was a good camera up to this point, taking reasonable photos, rugged, and small.
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