I read the following in a review at a camera website. One of the main reasons I bought this camera was because I thought I was going to be getting manual exposure while in movie mode. But at this website it says you have manual exposure for taking pictures - but not for shooting video. I haven't received the camera yet though - I'm hoping they got it wrong at this website.
http://www.cameralabs.com/reviews/Panasonic_Lumix_DMC_TZ10_ZS7/Panasonic Lumix DMC-TZ10 / ZS7
Movie mode The Lumix TZ10 / ZS7 inherits the exact same movie modes as its predecessor, which means Panasonic's resisted the temptation to offer 1080p Full HD or manual exposure control on the new model. As such the best quality video remains 720p HD, although like the TZ7 / ZS3, you get the choice of encoding it in AVCHD Lite or Motion JPEG formats, along with a dedicated record button, stereo microphones and the chance to adjust the optical zoom while filming, although you still can't take a photo without stopping the recording. Note to support AVCHD Lite, you'll need to use a memory card rated as Class 4 or quicker, while to support Motion JPEG, you'll need Class 6 or faster.