Are Views automatically updated

Yes, they are updated, every time you use them.

I think Microsoft sums up what a View is quite clearly:

A view can be thought of as either a virtual table or a stored query.

http://msdn.microsoft.com/en-us/library/aa214068%28v=sql.80%29.aspx

Views are not automatically cached.

When you SELECT from a view, the database has to run the query stored in the view to get the result set to use in your statement

The data you 'see' in a view, is not actually stored anywhere, and is generated from the tables on the fly.

Because of this be careful running views which are very complex. Always take into account that the view will have to be executed before its result set is accessed.

A view is basically a stored query, it holds no data so no, it won't get updated when the tables it's built on are. However as soon as you reference the view the query it's based on will run, so you will see the changes made to the base tables.