Camera manufacturers have improved autofocus since the FZ-1 came out. It is sluggish indoors in low-light. However, I find that using spot mode really helps. In fact, I leave it on spot all the time. I just keep it on spot, and aim at the most contrasy vertical line in the frame. With practice, this becomes second nature.
I've noticed that but it still isn't too bad.. I've also left the C-AF on as well..