#1: We like the "do" a lot...reminds us of a guy snorkeling. Unfortunately, we don't want users to pronounce the word "do", so we couldn't go with this design as is. However, we love the symbolism of what you have done. Maybe there is another way to accomplish the same but without emphasizing "do".
General: Also, you can experiment with other colors besides blue; no need to take the contest brief on 'blue' so literally.