I have the Olympus 1030 SW as well. I bought this camera specifically for a trip to Mexico we took this summer where I knew I would be doing a lot of snorkeling, swimming and underwater shooting. Overall, I was VERY pleased with the underwater shots. They came out clear, crisp and it was really fun just taking the camer straight into the water without having to worry about a possible leak in an underwater housing for a normal point and shoot.
As far as the above-water pictures, they came out just fine...but I wasn't thrilled with it. Some things I liked: the fact that it's 10 megapixels, the various program modes, it had an image stabilization option. The things I didn't like: the fact that there was no viewfinder. This was a biggie for me. I hadn't had a point and shoot without a viewfinder before and figured it wouldn't be a huge deal. However, when I began to use the camera I really didn't like the inability to review pictures on the LCD in the strong sun because of the glare without finding somewhere to hide for shade.
All in all, I would say it's a great little camera. If I didn't plan to use it underwater I wouldn't purchase it again for all dry-land shots, but it is really handy if you plan to snorkel, swim, take pictures in the rain, go somewhere with below freezing temperatures, etc.