Snopes says the photo is real, but the shadow is actually a dolphin. http://www.snopes.com/photos/surfer.asp
I think it's a real photo (heard that you can read up on it on Snopes), but it's a dolphin, not a shark, if I remember correctly.
Go to snopes and it shows another picture of a frolicking dolphin taken "later in the day" in the same area. This is proof? I know that light combined with water can play tricks on the human eye, but that is ONE BIG dolphin. I think that dolphins have smaller more curved dorsal fins. That seems consistent with the photo but that is still ONE BIG dolphin.
Lifesavers are candy, lifeguards are people. Nothing wrong with lifesavers, but I prefer jolly ranchers.
All I did was copy paste, I guess I should have put it in quotes. I think what it said about KWs being dolphins is right though.