Microsoft shows hybrid hardware/software approach to fix camera-motion image-blur
Microsoft Research has presented a research paper at the 2010 SIGGRAPH conference that shows a new hardware+software approach to reduce image blur due to camera motion. Their approach takes advantage of inertial measurement sensors attached to a DSLR, measuring the camera's acceleration and angular velocity (via Foto Actualidad via dslrcamera via PC Magazine).
The research paper compares their approach to other software-only approaches and provides a variety of samples that show better results. They have provided high resolution samples where you can mouse-over the picture and see the original versus three competing methods.
According to their research paper, this technology could either be embedded into the DSLR or used as an external device and contains off-the-shelf type of components.
You can read the complete eight page research paper (PDF), check out Powerpoint slides explaining their research, and more. The links are at the bottom of the article. If you don't have Powerpoint, you can also view the slides with the free PowerPoint Viewer 2007 available from Microsoft. The slides verify the main picture (slide #14 of slideshow), the camera in question is the Canon 1Ds.
I guess Windows 3.x, 95 and Vista gave Microsoft a lot of practice in trying to stabilize things :-)