BusinessWeek has an article on getting rid of the shakes, or a look at the image stabilization features of 8 digital camera models. All of the cameras tested had resolutions between 5 and 8 megapixels and a 3x to 4x zoom. Prices ranged from around $300 to $500.
The author concludes that image stabilization is now a "must have" feature for for compact digital cameras, and found that the image stabilization made for a noticable difference in image quality. There are two ways, to achieve the effect: physical movement of the lens and increasing the sensitivity of the sensor.
If you're looking for a compact digital camera, take a look at this article and see if this feature is right for you.
