Just got a XZ-1. I have tried using auto ISO in both P and A modes and it does not want to go past ISO 200 no matter how dark it is. I searched for posts and found some implying it will not go past ISO 800. That would be more sensible, but mine will not go past 200 no matter how dark it is.
This is ideed a known fact. Only with speeds longer than 1/2 s the ISO values will start going beyond ISO 200. Getting darker it then stays at about 1/2 s until ISO 800. Not very convenient.
OTOH, since the XZ-1 has a very high picture quality with ISO 100 and 200 and still fairly good with ISO 400 but noticeably starting to degrade with ISO 800, being confined to ISO 200 isn't bad at all in practical use.
Also I was trying to find out what firmware version mine has, but couldn't find it anywhere in the menus.
Via the Olympus Viewer 2 you can check your actual firmware version.
BTW I own a few Oly m43s so I am familiar with Oly cameras in general, but have never had any of their P&S cameras. Any help is appreciated.