There are (is) underwater housing(s) for the Nikon 8700.
A Google search turned up a quanity of websites.
The most prominent brand appears to be Ikelite.
Such a housing will cost as much as the camera.
http://www.google.com/search?hl=en&lr=&ie=UTF-8&q=8700+nikon+underwater&btnG=Search
.....
Is such a thing available? also, has anyone tried out the telephoto lens?

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic