Sanyo is finally gracing the US with the second generation of their respected waterproof Xacti line, the Xacti E2. Capturing either 8MP stills or 640x480 AVC/H.264 video, the 9.1-ounce Xacti E2 can fit up to 8 hours of footage on an 8GB SD/SDHC card (so that's 1GB/hr). Unfortunately, the Xacti E2 is only waterproof to depths of 5 feet. Available now for $400, we dug up some test footage for those of you who like watching a couple of dudes swimming:

SANYO Xacti E2 Key Features:
— Waterproof: submersible to a depth of five feet for 60 minutes
— Shoots high-quality video (advanced MPEG-4 AVC/H.264 at 640 x 480
pixels)
— Smooth movie recording and playback with 60 fps*5
— Takes 8-megapixel stills (JPEG format)
— Records onto an SD memory card or high-capacity SDHC card (memory
cards sold separately)
— Bright, 2.5-inch LCD color display flips out and rotates for easy
viewing
— 5x optical zoom for great close-ups
— Anti-shake digital image stabilizer*6
— Easy, one-handed operation
— Photo and Video Face Chaser technology uses a proprietary Sanyo
algorithm to compensate for distracting up-and-down or side-to-side
camera movement, keeping your subject steady and easy to follow
— Sequential Shooting allows high-speed continuous shooting at 5 frames
per second (for up to 10 frames) in [2M] mode so you won't miss that
perfect shot. Continuous shooting at 1 frame per second (for up to 10
frames) is available in [8M] mode
— CMOS sensor: an advanced 8.0-megapixel (total) CMOS image sensor
allows the E2 to capture high-resolution, 8-megapixel still images in
addition to recording high-quality digital videos.
— New underwater scene mode available in scene selection menu, making
colors more true and clear
— While recording video, 8-megapixel still images may also be taken
simultaneously
— Easy video sharing: Video recording employs highly efficient MPEG-4
AVC/H.264 compression. This keeps high-quality files small, so you can
upload videos to websites and blogs or share them via podcasts or
online social networks.
— "Quick stand-by" makes it possible to start recording or playback
immediately after the monitor is flipped open
— Bundled with 'Adobe Premiere Elements 4.0' for movie editing and
original DVD authoring
— Dimensions: 2.8 x 4.4 x 1.6 (W x H x D, in inches)
— Weight: 9.1 oz. with battery and SD or SDHC memory card
— Comes in a choice of Brilliant Blue or Pearlescent White

Send an email to Mark Wilson, the author of this post, at mark@gizmodo.com.