First off, on hacks. ; I haven't seen anything for the XT, and really this oughta have it's own topic, but I'll just bring it up here:
http://chdk.wikia.com/wiki/CHDK
Hacked firmware for a bunch of Digic II (and possibly later) based P&S cameras. ; A bunch of features, among them ability to record RAW files. ; Of course the usual caveats apply, user beware, it could break your camera, etc. ; Kind of makes me want to look for a used copy of one of the capable cameras. ; Maybe it's time to track down a cheap S3.
Now then, on to the new firmware for the Mark II. ; It seems to more or less do what it's supposed to. ; I remember reading that there may have been some weirdness about the shutter speeds, that they didn't match up to the still exposure times. ; That may still be the case, I'm not anal enough to do motion blur tests to see.
But now the Mark II has a capability in video mode (and perhaps live view for still shooting, I didn't think to test that) that it doesn't in normal still shooting mode. ; If you set the ISO to auto you can set the aperture and shutter speed to whatever you want and the camera will try to adjust the ISO to make the exposure work. ; In real time, as you're shooting if the brightness of the scene changes. ; I just think it's funny, I'd read gripes from users saying that they wanted Canon to add such an auto ISO functionality, and now it has it in live view mode only.
The only limitation that I can find is that you can't set any sort of exposure compensation, so you're stuck with whatever the default exposure ends up being.
If you do the same thing with live view off the ISO seems to lock at 400 if it's been set to auto. ; You have to take it off manual before the ISO auto adjusts.