From a Nikon Press Release:
"What makes Nikon's Live View mode so uniquely effective are the two options it provides for autofocus operation.
The first mode is the one used by everyone else.
Because the traditional AF sensors are blocked when you flip up the mirror for Live View mode, you have to drop the mirror to focus, then flip it back for Live View.
Canon, Nikon, and Olympus all have this mode.
The real trick comes in Nikon's second Live View (Tripod Mode) autofocus option.
In this mode, the camera performs contrast-detect autofocus, just like any point & shoot digicam.
That is, it reads data off the CMOS image sensor and evaluates how abruptly light to dark (or dark to light) transitions happen on the image plane.
Contrast-detect AF isn't nearly as fast as phase-detect, which is why the shutter response of most digicams is so much slower than that of most DSLRs, but the camera can focus without interrupting the Live View display.
As an added benefit, because it's working with data coming from the main image sensor, you can move the AF point anywhere you want within the frame area, right out to the extreme edges."