This is a video I did back on May 25th, 2011, showing the effectiveness of the Image Stabilization (IS) of the Canon EF-S 18-55mm f/3.5-5.6 lens.  For this I used the Canon EOS Rebel T2i in the 480p crop-mode, which gives a magnification of about 7x and really shows any instability in the video.  This is a handheld shot.

Description from YouTube:

Stabilization test using Canon EOS Rebel T2i in 480p 60fps crop-mode which basically uses the centre 640*480 pixels of the sensor, giving a magnification of about 7x.

The lens used is the basic kit lens that comes with it, the Canon EF-S 18-55mm IS.

The camera is handheld, and I start the video with Image Stabilizer (IS) off, then I turn it on.

I hope this is useful in showing the usefulness of having an IS lens for doing video.