There are a number of product on the market these days both commercial and shareware or freeware that do a fine job of stabilizing footage. I've used a few of the, but find myself going back to the Deshaker plugin for VirtualDub.

While I was looking through some of my own work, I came upon a GREAT example that shows what deshaker can do. I remind those who are unfamiliar with this program, this is is absolutely free, but only available on the PC platform.

Enjoy:

YouTube - Extreme VirtualDub Deshaker Demo (HD) (http://www.youtube.com/watch?v=GaPNf2Rk4qQ)