I was messing around an electric arc, water and a camera. While the arc was being produced I sprayed water on it, I believe the picture in camera is like the way it is because the light was moving slightly slower to get through the steam? Also, do the different colors mean different wavelengths of light? Some faster and some slower?

 

Light does move slower in water (averaging ~75% c), and different wavelengths of light have different speeds in water, yes (the index of refraction is very slightly wavelength-dependent). The effect you're seeing in camera here is a combination of diffusion (the water droplets are scattering the light all over the place due to a variety of reasons - acting like lenses, refraction, reflection, etc), and refraction is responsible for the different colors you see - that's how rainbows are formed. So, you are partially correct. Now: in a vacuum, all light moves at the same speed, so be careful with the statement "...different colors mean different wavelengths...some faster and some slower?" It's only in materials that the speed might vary with wavelength.

As a side note: be VERY careful with that setup. I would STRONGLY recommend (like, as a health and safety warning) to NOT be using or even have water near an arc like that. Perfectly pure water is nonconducting, but most water isn't 100% pure and will contain conducting materials and impurities.