From engadget:
Update: We’ve heard conflicting word on auto focus. According to Photography Review‘s preview, the camera doesn’t have auto focus in video mode, but according to the Olympus press release, as Super Marxio pointed out in comments, there is auto focus during recording. Perhaps Photography Review was looking at a non-final version of the camera. We do know that the camera does auto focus using contrast detection, like a regular compact camera, and while that’s the same method used by the GH1, DP Review claims it’s slightly inferior — though they did state they were working with a 0.9 firmware.