How do you protect camera?

The correct answer to this question would be, "It all depends". If you want to protect it from damage while you are walking around, (e.g. as a tourist) you could buy yourself a good camera bag. There are many manufacturers who make reasonable priced bags, like Lowepro, Kata, Crumpler, etc... If you are a serious amatuer with many things in your camera kit, you could look at something more rugged like Pelican cases, or even Lowepro which have HDPE cases. These are designed with a lot of foam padding to protect you camera equipment during transportation etc. For outdoor rugged use, you can look at getting yourself some camera armour (http://www.cameraarmor.com) There are also a lot of manufacturers who make underwater housings for cameras.