Video data of successive image frames are processed in a digital camera or other video image data acquisition device immediately after acquiring the video data, or during post-processing of the video data at some time after acquiring the video data, to reduce the effects of unintended motion (jitter) of the hand-held devices by stabilizing the images. A processing circuit used to calculate an estimate of motion between components of successive image frames as part of a MPEG-4 or other compression algorithm is also used to estimate motion upon which the video data are altered to stabilize the images. The individual images may be pre-stabilized by using the results of stabilizing a prior image in order to reduce the amount of processing necessary to stabilize a current image.