The DIS can be turned on or off and works in addition to any OIS on a lens (works with any lens)> It appears to have little adverse effect on video quality, results in only a minor crop of the image, and helps stabilization enormously.

Here is a video showing the effects using a long telephoto lens, first with only OIS (this lens does not have good OIS) and then with DIS in addition:

Samsung NX1 4K Test Video: Effect of Digital Stabilization using the 50-200mm NX Lens on Vimeo

And here is a handheld video shot with the NX 16-50mm S lens using OIS and DIS:

Samsung NX1 4K Video: After the Rain on Vimeo

Wow, that's quite a firmware update!

Shot this today with 1.40 FW ( DIS on ) with 15mm F2.8 Sigma at macro 5.9" range handheld :

Bee with Samsung NX1 and 1.40 FW ( DIS on) with 15mm F2.8 Sigma at macro 5.9" range handheld on Vimeo

If the lens selection wasn't so limited, and expensive, I would jump on this camera.Giving up autofocus and auto exposure to use my Canon lenses is a deal killer for me.

OIS then OIS+DIS using the NX 16-50mm S lens.

Samsung NX1 4K Test Video: Test of DIS with Close Stationary Objects on Vimeo

If the lens selection wasn't so limited, and expensive, I would jump on this camera.Giving up autofocus and auto exposure to use my Canon lenses is a deal killer for me.
I use my legacy DSLR lenses with my NX1 that are great for 4K video.
Screenshot from my NX1 4K video with 15mm F2.8 Sigma :
https://farm6.staticflickr.com/5823/20834737181_e01338502e_o.png

Bee with Samsung NX1 and 1.40 FW ( DIS on) with 15mm F2.8 Sigma at macro 5.9" range handheld on Vimeo

4K video test of the effects of DIS using a lens with no OIS. The first clip in each scene has DIS turned off:

Samsung NX1 4K Test Video: Test of DIS with non-OIS Lens, Close Stationary Objects on Vimeo

Here is an example of why DIS is such an important breakthrough. This is a video of close-ups of insect life on flowers, shot with a 90mm (35mm-equivalent) macro lens handheld. You cannot efficiently shoot dragonflies, butterflies and bees at work with tripods - these insects move around and you have to "capture" them opportunistically - you have to be able to move after them with camera and shoot while they are in place. Without stabilization, the close-up video would be unwatchable - jitter and shaky. Well, here is what you can get using the NX1 with DIS and OIS combined:

Samsung NX1 4K Video: At Work in the Garden, Close-Up on Vimeo

Sunnyday in a Swiss Garden NX 1, 16-50mm S, 1.4 Firmware. OSS & DIS, ND Filter

Could be much slower movement with the new big Gimbal. Last clips DIS only MF Meyer Görlitz Primoplan 1.9 58 mm from 1960 a creamy buttery Bokeh...

https://www.dropbox.com/s/cgpaemplziyz9lf/Samsung%20Garten.m4v?dl=0

No grading. Part with Gamma C, some DR Settings from Andrew Reid's Setup Guide.

UHD 25p FCPX 1080 50p, Conversion Edit Ready

Some are Over exposed and some with 1/3 under

New EOSHD setup guide gives Samsung NX1 LOG capability and more - EOSHD (http://www.eoshd.com/2015/08/new-eoshd-setup-guide-gives-samsung-nx1-log-capability-and-more/)

Two videos where DIS is combined with OIS (16-50mm PZ lens):

Samsung NX1 4K Video: Kite Hill, Stanford on Vimeo

Samsung NX1 4K Video: Cactus Garden, Stanford on Vimeo

50-200mm NX lens + DIS:

Samsung NX1 4K Video: Pac-12 Football Game on Vimeo

Rokinon 12mm f2.0 + DIS:

Samsung NX1 + Rokinon 12mm f2.0 Lens: 4K Test Video on Vimeo

Again:

Samsung NX1 + Rokinon 12mm f2.0 Lens: 4K Test Video 2 on Vimeo

And again:

Samsung NX1 4K Video: Campus Art Museums on Vimeo

Shooting action sports handheld Lens: 45mm f1.8 without OIS.

Samsung NX1 4K Video: Lagunita Paper Chariot Races on Vimeo

Did you hear the rumor of the NX1 being discontinued?

Samsung NX1 dead - Samsung customer support & retailers say camera discontinued in Europe - EOSHD (http://www.eoshd.com/2015/11/samsung-nx1-officially-dead-samsung-announce-complete-discontinuation-in-europe/)

Probably true as it just lost 400 bucks
Samsung NX1 Mirrorless Digital Camera EV-NX1ZZZBZBUS B&H Photo

Bad news for the 3rd party lens suppliers.

Fact: No more marketing the NX in Germany and the Netherlands. That is all (so far).

Discounts in this season in the US are not the signal of death of any product.

Latest News Archives - EOSHD (http://www.eoshd.com/category/latest-news/)

Whatever the marketing fate, the NX1 right now delivers the best in-camera stabilizing of any video camera, along with the best 4K.

This was shot handheld using two lenses that have no OIS (the 12mm Rokinon and the 45mm NX):

Samsung NX1 4K Video: The Campus Farm on Vimeo

Nice, what is your workflow for H265?