Adobe and University of Wisconsin scientists have created software that can correct shaky camerawork, but it's way cooler than anything on the market now. Using 3D modelling, it guesses the intended look, then warps the original video to adjust.
Basically, the software examines each frame and warps it to form a steady line of shots based on a 3D projection of the cameras path (courtesy of off-the-shelf Adobe software), giving a buttery-smooth look almost as good as if the camera was on rails. It's got a few downsides, namely that it can only be applied after the entire film is shot, and the resulting product will need a little bit of cropping. But it still looks like a pretty great tool for amateur filmmakers, and should be available in about two years. [New Scientist]