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I was out with the Nex 7 and 35 1.8 lens today. The auto focus really struggled in here. I had several out of focus images that the peaking was showing me 'in focus'. Any one else dealt with this? I do realize, after the fact, I should have put it in manual with the zoom function to dial in the precise focus. But from what I was viewing on the LCD, I thought all was good. Definitely a learning experience this afternoon.
You answered your own question. If the subject isn't moving and you want precise focus, use magnified view. When I use my 35/1.8 AF lens, I set the AF/MF button to hold and use it to switch to MFand zoom in.
As far as focus peaking, it's a great tool if you understand what it is doing. Focus peaking is showing you areas of high contrast, which usually, but not always, are an indication of an area being in focus. To get a high percentage of critically focused shots, I need to use focus peaking often in conjunction with magnified view. I save AF for times when my subject (usually my 8 month old daughter) is moving. When taking these sorts of photos, I've actually become a big fan of face detection AF.
Since this is the image thread, here's one I took with the 35/1.8 using face detection AF. She looks calm and poised, but as anyone with an 8 month old knows, she was only like this for about 1/2 second.