How about taking a look at the Pentax Optio W60? It's the Pentax equivalent of the Olympus 1030 SW - and is slightly cheaper. (Currently $221.95 USD at B&H).

Also, if you already own a digital P&S, another option would be to buy an underwater housing. There are housings available for SLRS/DSLRS, too.

As for getting a refurbished model, this should be OK, especially if a US warranty is included. Remember to make sure that the seller has good ratings on his/her favor.

Hope this helps.