The DCR-PJ5 has a Digital image stabiliser which is better than the Optical image stabiliser found on most comparable spec camcorders that were launched more than two years ago. 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 camcorder's image stabiliser type (Digital) is actually the worst image stabiliser type amongst all comparable spec video cameras that came out around the same time as the DCR-PJ5.
The best image stabiliser type across comparable types of camcorder is Optical.