I'll take a stab at it. I looked at the manual for your camera online and I think what you are reading is the minimum focusing distance that your camera can shoot at. What this means is that you cannot shoot a photo (in focus) closer than 12cm from you subject. It says that when you are in macro ("close up") mode that you can take sharp photos of objects between 12cm and 70cm (~5-27 inches) when you are at wide angle (zoomed out) and from 3.9ft to 6.9ft when you are all the way telephoto (zoomed in).
So, if everything else is the same, the closer focusing distance (5cm) is better because it allows you to get closer to the subject. But, it may not be an issue for you. Take some test photos of things around your house to see if your camera does what you need it to do. Try shooting at the wide angle end of your zoom and then try again by zooming all the way to telephoto. You may get what you need.
I've never taken underwater photos so I'll make the following assumptions:
Assumption #1 - The water will cut some of your ambient light (I don't know how much).
Assumption #2 - You will want to photograph quickly moving things (i.e. fish, sharks, giant squid, sea monsters, etc).
So, the other things you should be looking at are the speed of your lens and the ISO range. You may need to use a high ISO (400-800) and a large aperture. Your camera goes all the way up to ISO 800 (good) and has a minimum f/stop of 2.8-3.7 (also pretty good). It looks like you're set for low light photos.
To compare the macro capabilities of the Kodak to the Canon A520 follow these links and look at the Macro section of the review:
http://www.dpreview.com/reviews/kodakdx7590/page5.asp (Kodak DX7590 - looks like it has the same lens)
http://www.dpreview.com/reviews/canona520/page5.asp (Canon A520)
So, the bottom line is that as long as your camera is getting photos that are close enough for your purposes then you seem to have a camera that is pretty well suited for underwater photography.
Of course, I like Canons but don't let that influence you decision.
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