Want a cheap, simple solution? Go to Home Depot and buy a 3 plastic drain pipe for under $5- this is your launch tube. Next, take an 8-inch square of wax paper and score an X on the center with a dull pencil (dont cut! Just score it)
Wrap the wax paper over one end of the tube, then secure it tightly with a rubber band or some duct tape in order to make it air and water tight (this is the TOP of the launch tube). You now have an air/water tight launch tube when inverted, and your rockets nose cone will cut through the wax paper like butter. If you experience high air pressure that bursts the wax paper prematurely, you can double up on the wax paper. Test the pressure BEFORE you insert your rocket.
Insert your rocket into the bottom end of the tube, and drill a small hole through the tube walls at least 3-inches up from the end of the tube. Insert a section of wire hanger through the tube and bend the ends so it wont fall out (this is the stop that keeps the rocket from falling out of the tube) Get some coated electrical wire (old headphone cord, a cord from an old cell phone charger, etc) and strip the ends. Connect one set of leads to your igniter, and run the other leads up the side of the tube (youll connect to your launcher before launch) The connection to the igniter shouldnt get wet, since its at least 3-inches inside the tube where the air is trapped. Epoxy the launch tube to a cinder block to anchor it.
This process is all just my theory, but I THINK it would work. However, rockets are not torpedos, and water is much more dense than air, and I imagine the water/air interface is going to pose some challenges for you. But what the hell, go for it! I love experimenting with this kind of stuff, and no doubt youll learn a BUNCH no matter what happens. Disregard the critics:neener:, but heed the safety warnings and have fun.