As mentioned, you can shoot in 1280 x 720p HD video, in Motion JPEG or AVCHD Lite mode.
The quality of movies is up to Panasonic's usual standards, though it's a shame you can't shoot in full 1080p HD mode.
It's very easy to activate movie mode via an unmissable red button on the top, and there's a good range of exposure control. Intelligent Auto mode is available in movie mode, or you can stick to conventional PASM controls.
It's also good to be able to make use of the 24x optical zoom when shooting video, along with face detection. There's a proper stereo mic built-in, and a wind Cut function also helps to block out background wind.