XZ-1 and Manual Focus
In shooting mode press wheel controller to left, press info and choose MF. No you can manually focus pressing wheel controller up/down or turning it. Notice that the focus goes merry go around so you can't tell when it's on infinite focus and when it isn't.
When you're done focusing press ok or info button.
Neat trick is to AF and then change to MF, this way the focus point should be where the AF left it if the camera didn't refocus before changing it to MF.
MF is good for preventing focus hunting while shooting video, BUT if you want to change the focus you have to stop shooting and change focus.