This is another video reuploaded from engadget by some randomer that shows the Nokia Lumia 920 optical image stabilisation (floating lens PureView phase 2) in action.
The first part of the demo is an exaggeration to show exactly the point in the that OIS kicks in. You’ll note like before the camera shake is heavily reduced to the point of being eliminated. It appears like the demo person has stopped shaking their hands but they haven’t.
The second part of the demo shows a more realistic situation where a user may try to hold the phone steady with some panning. Here we’re told it’s like being on steadicam or tripod but handheld (funny he says that as actually if you look at the reflection, this is fake and he’s recording on a DSLR with a sticker to make it look like a 920 on see through steadicam /s).
The third part of the demo shows a competing smartphone against the Nokia Lumia 920. Both are attached to the same rig, so it’s not like Nokia started shaking the phone on the left and put the other phone on a dolly.
BTW if you’re interested in getting smooth video like the 920, you could use hardware stabilisation accessories. Here’s a demo with the 808. It’s bulky but if you’re planning ahead to film something, this might come in handy.
Seriously, smoothing out videos makes the difference between night and day how watchable something is. Actually, this type of accessory would trump what the 920 could do natively (well if you calibrate it properly) as that’s the whole point of it. This would not be something that could help you capture a spur of the moment smooth video.