Image stabilization system and method for a video camera

A video image stabilization system including a camera having an image capturing device configured to capture a video image. The camera has a selectively adjustable field of view and at least one processing device is operably coupled to the system wherein the processing device receives signals indicative of the field of view of the camera and images captured by the camera. The processing device sequentially grabs a first and second image. The processing device determines a stabilizing adjustment for the video image as a function of an intended change in the field of view of the camera during the interval between the capture of the first and second images based upon the signals indicative of the field of view and an analysis of the first and second images. A portion of each image captured by the camera is selected for display. The selected display portion is less than the entire captured image and the stabilizing adjustment determined by the processing device involves adjusting the relative location of the selected display portion within the captured image.