Well everyone is going to recommend the phone they have, so here's a plug for Samsung galaxy s2 from me. it's almost a year old and still one of the fastest phone on the market, galaxy nexus is close but no SD card kills it, 16 GB isn't enough when you starts to store all sorts of crap on it. Battery life isn't the best, but smart phones are like that, and unlike iphone you can always carry a spare battery.

When I need water/moisture proofing, I just drop it in a ziplock bag.