Originally posted by Vishnu So what should I get now, GH1 or K7
Well, you can't find a GH1 in the US right now, so depends on timing.
As stated above, if video is your most important criteria, GH1 will beat K7 for ease of use. For still photos, K7 will win in resolution and file "quality." Right now there is way more and better glass available for Pentax than for GH1 unless you are willing to use an adapter on the Panny (and you will lose functionality depending on the details).
I've shot the G1 and currently have an E-P1 (along with K20d). u4/3 is very cool and excels at some things, but isn't going to give you the performance of APS-C. Physics is physics...just depends on what you need and what you like.