The best image stabilization is the type that is built into the lens.

For DSLR cameras, that adds quite a bit of cost to the lens.

A nice starter lens with image stabilization will cost about $500 - $600.

For non DSLR cameras, the Canon S3 IS is a good choice.
It has a 12X zoom with optical image stabilization.

A hint:
The best tool for steading a camera is to use the viewfinder instead of the LCD to frame your shots.
Your head is much steadier than two outstretched arms.

If you use the viewfinder and also lean against a solid object (wall, doorway, pole, etc) you should be able to get rock steady shots.