Hi Hummerfan and welcome to the Q&A Forum,
Page two of this outstanding article about photographing birds covers just about every aspect of settings you should use:
http://www.digicamhelp.com/learn/nature/birds2.phpEvery photographic situation is different, so there are really no hard and fast rules. But other than becoming familiar with the settings on the FZ18 that are mentioned in the article, I'd change the focus mode to high speed, single area focus.
I'm not quite sure Cloudy white balance would make a big difference than auto, but take some test shots. I'd be certain to spot meter on bright areas on the bird and adjust exposure compensation as necessary to avoid blown out areas. When photographing birds, I prefer to underexpose so I can draw out detail when editing. Blown areas have no detail.
Ideally, the sun should be falling on the front of the bird, rather than having a backlit situation. So position yourself strategically.
I've started you on page two, but do read the entire article, which starts here:
http://www.digicamhelp.com/learn/nature/birds.phpGil is a highly skilled bird photographer. He's also written on how to photograph birds in flight:
http://www.digicamhelp.com/learn/nature/flight.phpIf you have questions after reading the article, let us know.