The Panasonic HX-DC1 has a better image stabiliser type than most video cameras that came out around the same time as it. This camcorder has a Digital image stabiliser, whereas most similar spec video cameras that are a comparable age to it have an Optical image stabiliser. Some compact cameras have digital Image stabilisation only, which simply boosts camera sensitivity (ISO) to obtain a faster shutter speeds to help prevent blur. No hardware is involved.
This video camera's image stabiliser type (Digital) is actually the worst image stabiliser type amongst all big sensor size video cameras that were released around the same time as the HX-DC1.
An Optical image stabiliser is the best image stabiliser type amongst comparable types of video camera.