Also, instead of torches, use bioluminescent (sp?) creatures. Also, remember, if you are very deep underwater, there's no light, so this is important, but remember that light attracts both predators and prey!
I've been thinking on more neat ideas for having things work underwater:
bioluminescent creatures (from above)
buildings, vehicles (say, a chariot pulled by dolphins), and equipment grown from coral...the coral is "encouraged" to grow quickly by specially-trained magic-using experts (non-combat magic only), so that it doesn't take 100s of year to get yourself a coral cottage
In a saltwater campaign, one could do the same thing with salt water, forcing it to coalesce into crystals of the desired shape, and then treated so it won't dissolve
possible communication through having a race that uses lights on its body, flashed in certain patters, to talk without noise (instead of or in addition to regular speech, its the DMs choice). This would alllow for silent conversation, but would also be easily visible in the deep (and therefore dark) parts of the ocean
how about having an assassin who murders by forcing someone to drink saltwater or freshwater (whichever is inhospitable to that species...if you are in a freshwater ocean vs saltwater)
Massive amounst of fun with "lightning bolt", unless you chose to alter it!...or if you are in deionized water, which wouldn't have the necessary nutrients to support life
Having very large or strong creatures push other creatures away by blowing/shoving water at them...really big guys could have a simiilar effect to a tornado, creating massive and dangerous underwater vortexes
You could have all sorts of interesting pets/animal companions...not just the ones suggested in the player's handbook
Have some of those MASSIVE (6 feet long, or longer) underwater scorpions (which actually existed on earth, albiet a LONG time ago)
...farting (need I say more?)
Make a feat like an improved versoin of blindfight, where one senses the movement of the water around you to see an opponent's movement without use of your eyes?
Perhaps, where PCs in normal campagins face trouble coping with large bodies of water they must dive through to reach the next part of the dungeon, you could have a cave with a room that is a large air-pocket
I might add more ideas later...
KrazyHades out