NOTE: IT IS BEST TO VIEW THESE IMAGES AT 16K COLORS OR HIGHER
Here are two pictures Bryan captured from his Sony TRV series. The first is using image stabilization. The second was taken with image stabilization turned off. The shots were taken from a tripod so the image stabilization should not have had to work very hard.
Image Stabilization on (camera mounted on tripod.)
Without Image Stabilization (camera mounted on tripod.)
The Sony TRV-series uses electronic image stabilization. With this technique the camera films the image with all its shaking then the camera electronically moves the image about in order to keep it relatively still. Optical image stabilization is supposed to produce a better picture. With Optical image stabilization incoming picture is held steady on the CCD by a mirror that acts opposite the vibration to counter the shake. This requires no electronic voodoo and therefore there is no post capture degradation.